Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
We live in PA and own a place in VA. With Youngest approaching college age, we are looking at the possibility for me to establish residency in VA to multiply his options for in-state tuition. DH would join me in VA after he retires and Youngest graduates high school. Would this prevent us from filing Federal taxes jointly? I realize it would impact state tax filing.

Just an idea at this point.

IP
Print the post Back To Top
No. of Recommendations: 2
We live in PA and own a place in VA. With Youngest approaching college age, we are looking at the possibility for me to establish residency in VA to multiply his options for in-state tuition. DH would join me in VA after he retires and Youngest graduates high school. Would this prevent us from filing Federal taxes jointly?

No. Neither is a community property state, so your Federal wouldn't be any more complicated than today.

Phil
Rule Your Retirement Home Fool
Print the post Back To Top
No. of Recommendations: 0
Thanks Phil!

IP
Print the post Back To Top
No. of Recommendations: 1
I'm sure you've done this, but be certain to closely check the residency requirements in VA as they relate to in-state tuition. Many states go to great lengths to prevent people from doing what you've described. I have no idea at all, though, what the situation is in VA. Otherwise, sounds like a decent plan, assuming you and the rest of your family don't mind living apart so much of the time.
Print the post Back To Top
No. of Recommendations: 2
Neither is a community property state, so your Federal wouldn't be any more complicated than today.

However, your state taxes might be a bit more complex. As a minimum, you'll be doing two sets of state taxes, each showing one full-year resident and one non-resident. And for the year you switch, you'll throw "part-year resident" into the mix.

With New Mexico and Idaho (my experience; both community property states), resident status makes a difference on some deductions and credits. Plus, New Mexico considers you a full-year resident (they claim all your income) if you are present for more than 185 days, while Idaho allows you to prorate your income (9-months' income to New Mexico, 3-months' income to Idaho), which results in 3 months of income being taxed by both states. And while both states allow some credit for the double tax, you still end up with a higher tax bill.

Best of luck--be sure to read the fine print on residency requirements for in-state tuition carefully!!

Kathleen
Print the post Back To Top
No. of Recommendations: 0
I'm sure you've done this, but be certain to closely check the residency requirements in VA as they relate to in-state tuition. Many states go to great lengths to prevent people from doing what you've described.

Yes, thank you. We briefly looked at doing this for Eldest whose first choice was an out of state state school for which we are paying $20,000 more per year than state residents. Heck, that difference would have paid for the house we never quite got around to buying.

Fortunately, we already own the place in VA, so it is not a question of do we buy or not. I intend to be very nosy with the schools Youngest tours to see what the scoop is. This was just an exercise to determine if it made sense or not, as filing separately would probably kill the tuition savings.

On a side note, Eldest probably would not have gotten into his school if he had been a resident. It has been frequently discussed and articles have been written that many state schools will give higher paying students a bit more understanding when it comes to slip ups. His GPA was definitely not as good as it could have been, although he did turn it around the last couple of years and had some great extra-curriculars. This semester's grades are not in yet, in fact last final is today, but it sounds as though he is more than holding his own.

IP
Print the post Back To Top
Advertisement