Moving For School

I'm a full time undergraduate student, originally from California. I'm now a sophmore at a school in Washington state. I'd like information on switching my residency from California to Washington State (it is my understanding that Washington State does not have an income tax). I live in the dorm rooms at my school, but my school provides me with a permant (will be the same for the next 3 years) mail box with it's own address.

I currently make a sizable income off Internet related affiliate programs and various investments (about $60,000/yr). For the tax year 2000 I paid Federal and California taxes. For the first two quarters of 2001 I have paid taxes to both California and the Federal government.

What are the steps necessary in switching residencies to Washington State? Thanks

Matt

I don't know about Washington specifically, but most places you have to have a permanent address for twelve consecutive months (in NM my school address wasn't considered 'permanent' as I couldn't stay in the dorms through Xmas or the summer.) It also may be affected by you being in school right now because if you were to become a Washington resident, the school would lose a lot of money on you. Plus, your school records list your California permanent address. Good luck.

In order to qualify as a non resident for California Income Tax purposes, you have to qualify as a non resident under California law.

The rule in California is that a resident who is outside California for a temporary or transitory purpose remains a resident.

I suggest you download for free the California Franchise Tax Board Publication, Guidelines for Determining Resident Status at [url]http://www.ftb.ca.gov/forms/00_forms/popup.asp?FormName=00_1031.pdf.[/url] The Publication lists, among other things, the most important indications of residency. In your situation, I believe you will have a difficult time proving to Cal, that you are away for other than a transitory purpose since you are away to attend school. However, it would be worth your while to study the Publication.

Following is the California Code in pertinent part:

Under California Revenue and Taxation Code Sec.17014

(c) Any individual who is a resident of this state continues to be a resident even though temporarily absent from the state.

(d)(1) For purposes of this subdivision, returns to this state, totaling in the aggregate not more than 45 days during a taxable year, shall be disregarded.

Would filing in California as a part time resident be possible? Also, are there any tax forms I need to fill out for WA? Thanks for the help you have already given. This year, I have never been in CA for longer than 45 days. It appears after reading thru the pdf that the California tax code is pretty vague. They have some examples, but nothing really pertinent to me.

Can't I say that after I graduate school, I plan to live in WA? Than my stay in WA is not temporary.

Matt

The Law is not vague. The law is that if you are a resident of California until you leave California with the intent to permanently reside elsewhere. What is vague is the proof of intent. The Publication lists the factors that are used to determine that intent.