Is a full time student at Columbia University considered resident for tax purposes for both NY and NY City ? Can the student claim being a resident of the State where he used to live before becoming a student ?

AtlantaTaxExpert

Davensharma:

Full-time college studenta are not normally considered residents of out-of-state college they attend unless they take positive steps (register to vote, get an in-state driver's license, etc.) to become state residents.

Now, if you work in NY state/NYC, you will pay NY state regardless of whether you are a state resident or not.

Further, if you come from another state and remain a resident of your home state, it is likely you will have to file state income tax returns for your home state as well as NY state. It is also likely that your home state will give you some type of credit for state income taxes paid to NY state.

davensharma

Thanks. One follow-up question - what if the student worked part-time (not significant income), but had large portfolio income. Should he pay taxes to the home state and claim credit for NY state, and pay only taxes to NY on the income earned in NY ?

AtlantaTaxExpert

Davensharma:

Your assessment is 100% correct. Further, when you file your state income tax return, attach a copy of your NY state tax return. Also attach a copy of your home state return to the NY state return. That provides the state tax personnel from both states with all the information they need regarding the taxes paid to the "other" state.

davensharma

Sorry, Failed to ask about NY City taxes in the previous post. If the taxpayer is full time student but has income from summer job, would he have to pay NY City taxes on that income? In using the tax program I noted different results if I were to show as a full year NY City resident, part year NY City resident, or zero taxes if shown as a non-resident. Which is the correct approach?

AtlantaTaxExpert

Davensharma:

As noted above, you are a non-resident for tax purposes unless you intend to move to NYC after you graduate. Claim non-resident, as that results in the least amount of tax.