The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: 529 plans||Date: 11/17/2013 4:32 PM|
|Author: inparadise||Number: 119546 of 122299|
The couple of states that I know about require the student to have lived in the state for a year before the beginning of the first school year, in order to be considered a resident for in-state tuition. And if he starts out as a non-resident the first year, he will not qualify as a resident in subsequent years even though he was living in the state during that first year -- he'd have to do the qualifying year before enrolling for the first time.
In this case, yes and no. We could move down for reasons other than child's education, aka retirement, and our residency for school purposes would change after we have been living there a year. The student moving down and continuing to go to school with change of residency doesn't work for this purpose.
Each state is very different. Some are very lenient in terms of what constitutes residency, and others are pretty tough. Have checked out two of them in depth. If Youngest chooses a PA state school, (no bargains here, even with in state tuition,) he would get to keep state residency for school purposes even if/when we leave the state.
One possible approach would be for me to reside in the other state for Youngest's senior year, particularly at the lenient state for proof of residency. I would pay that state's income tax, DH would pay PA, and we would file Federal together. One thing I don't know is how do we pay state taxes on interest/cap gains on joint accounts and investments. But at this point it is very theoretical, and frankly I'm not sure we would go through with it if Youngest decides that is where he wants to go to school. It's fun to think outside the box, though.
pretty thoroughly researched in this matter
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|