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Where do I live for tax purposes? It's a simple question with no simple answer for college students. You grew up in California. You attend college in Massachusetts. You worked a summer internship in New York. You have an apartment in Massachusetts nine months a year but return to your parents' home in California for summers and breaks. California says you're still a resident because you haven't abandoned California domicile. Massachusetts says you're a resident because you're present more than 183 days. New York wants to tax your internship income as a non-resident. Suddenly you're facing three state tax returns, potential double taxation, and conflicting residency claims from multiple states. The confusion isn't accidental—state tax residency rules weren't designed with modern college students in mind.
Understanding state tax residency can help you understand whether you must file as resident, part-year resident, or non-resident in multiple states, how to avoid double taxation when states have conflicting residency claims, and which credits and strategies eliminate paying the same income to multiple states. This blog explains the difference between domicile and residency and why it matters for college students, how states determine tax residency and the 183-day rule, when college students must file returns in multiple states, how to claim credits for taxes paid to other states and avoid double taxation, and common scenarios including out-of-state students, summer employment, and remote work/internships.
Domicile vs. residency: Understanding the distinction
States use two concepts to determine who must file resident tax returns: domicile and statutory residency.
Domicile defined
Domicile is your permanent home—the place you intend to return to whenever you're away. You can only have one domicile at a time.
Key factors states examine:
- Where you grew up and have family ties
- Where you're registered to vote
- Where your driver's license is issued
- Where your vehicle is registered
- Where you maintain bank accounts
- Where you own property or have a permanent address
- Your stated intention about where you consider "home"
Important for students: Attending college out-of-state doesn't automatically change your domicile. Most students retain their pre-college domicile (usually their parents' state) throughout college unless they take specific actions demonstrating intent to abandon the old domicile and establish a new one.
Example: You grew up in Texas, attend college in Pennsylvania. You maintain a Texas driver's license, Texas vehicle registration, and Texas voter registration. You return to Texas for summers and breaks. Your domicile remains in Texas throughout college.
Statutory residency
Statutory residency is based on physical presence in a state, typically 183+ days during the tax year, regardless of domicile.
The 183-day rule: If you're present in a state for more than 183 days during the tax year (usually more than half the year), that state generally considers you a statutory resident for tax purposes.
How days are counted: Any part of a day counts as a full day in most states. Arrive at 11 PM or leave at 6 AM—that day counts.
Example: You're domiciled in Texas (no income tax) but attend college in Massachusetts. You're present in Massachusetts from August 25-December 20 (118 days) and January 10-May 20 (131 days) = 249 days total. You meet Massachusetts' 183-day threshold and are a statutory resident of Massachusetts, even though your domicile remains Texas.
Why the distinction matters
You can be taxed as a resident by:
- Your domicile state (based on permanent home), OR
- Any state where you're present 183+ days (statutory residency)
This creates potential double taxation when your domicile state and your college state both claim you as a resident.
State tax residency rules for college students
States have varying rules for determining whether college students are residents.
States with special rules for students
Massachusetts: Massachusetts defines statutory residency as having BOTH (1) a permanent place of abode in Massachusetts AND (2) spending more than 183 days in the state. Most out-of-state students do NOT meet the statutory resident test because dormitories and typical student rental housing do not qualify as a "permanent place of abode" under Massachusetts law. However, if you establish a permanent place of abode (signing a year-round lease, for example) and are present 183+ days, Massachusetts may claim you as a statutory resident even if you maintain domicile elsewhere. Additionally, significant off-campus employment beyond minimal student work may affect your status.
New York: Generally doesn't count college students as statutory residents if they're in New York primarily for education and maintain domicile elsewhere. But New York's definition of "primarily for education" is narrow—significant off-campus employment can defeat this exception.
Pennsylvania: Students attending college are generally considered non-residents for Pennsylvania tax purposes if they maintain domicile in another state.
California: Has aggressive residency rules. If you're in California 9+ months (approximately 270 days) for purposes other than brief vacations, California may claim you as a resident. Students attending California schools while domiciled elsewhere usually qualify for the student exception, but working in California beyond minimal employment can create residency.
States without special student exceptions
Many states don't have explicit student exemptions in their tax codes. However, most still require additional factors beyond mere physical presence to establish statutory residency. While a 183-day presence threshold commonly applies, states typically also require maintaining a "permanent place of abode" or similar connection to the state during that period.
Important distinction: Simply attending college for 183+ days does not automatically make you a statutory resident in most states. You generally must BOTH:
- Be physically present 183+ days, AND
- Maintain a permanent place of abode or permanent home in that state
Dormitories and temporary student housing often do not qualify as a "permanent place of abode" under state tax law definitions, protecting students from unintended residency even in states without explicit student exceptions.
States to watch carefully:
- Connecticut (no explicit student exception, but still requires permanent place of abode test)
- Various Midwest and Southern states (apply standard statutory residency tests without special student carve-outs)
Even without a specific student exception, the "permanent place of abode" requirement typically protects students living in dorms or temporary housing. However, students who sign year-round leases, establish permanent housing, or demonstrate intent to remain beyond graduation should carefully evaluate their residency status.
States applying standard 183-day rule to students (partial list):
- Most Midwest and Southern states
- Connecticut (no student exception)
- Various other states without specific education provisions
States with no income tax
Nine states have no income tax on wages: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire (New Hampshire taxes interest and dividends only, eliminated wage tax).
Planning advantage: If your domicile is a no-income-tax state, you avoid domicile-based taxation. You only face taxation in states where you work or attend school if those states claim statutory residency.
When college students must file multiple state returns
College students frequently must file returns in multiple states as different combinations of resident, part-year resident, and non-resident.
Scenario 1: Out-of-state student at college full-time
Facts: Domicile in State A (your parents' state). Attend college in State B (present 250+ days). No income earned in State A during the year.
Filing requirements:
- State A (domicile state): File resident return reporting all income from all sources. Claim credit for taxes paid to State B.
- State B (college state): File non-resident return reporting only State B-source income (wages earned in State B). OR, if State B claims statutory residency and doesn't have a student exception, file resident return reporting all income.
Scenario 2: Student with summer job in different state
Facts: Domicile in State A. Attend college in State B. Summer internship in State C.
Filing requirements:
- State A (domicile): Resident return reporting worldwide income. Claim credits for taxes paid to States B and C.
- State B (college): Non-resident return (or resident if 183+ days and no student exception) reporting State B income.
- State C (summer job): Non-resident return reporting State C wages from internship.
Result: Three state returns required.
Scenario 3: Part-year resident (moved domicile during year)
Facts: You graduated, moved from parents' home in State A to new job in State B, intending to make State B your permanent home.
Filing requirements:
- State A: Part-year resident return reporting all income earned while domiciled in State A (January through moving date).
- State B: Part-year resident return reporting all income earned while domiciled in State B (moving date through December).
Important: Part-year resident returns report worldwide income during the resident period, not just income earned in that state.
Scenario 4: Remote work or online classes
Facts: You attend college online while living in your parents' home in State A. You work remotely for a company based in State B but perform all work from State A.
Filing requirements:
- State A (where you physically work): Resident return reporting all income. The work was performed in State A, so State A has primary taxing authority.
- State B (employer's state): Generally no filing required if you never set foot in State B. However, some states (New York's "convenience of employer" rule) may try to tax remote workers.
Avoiding double taxation: Credits for taxes paid to other states
When two states tax the same income, you claim a credit for taxes paid to other states to avoid double taxation.
How the credit works
Your domicile state (resident state) taxes your worldwide income. If you also paid tax to another state on income earned there, your domicile state provides a credit for taxes paid to the other state.
Formula: Credit = lesser of:
- Taxes actually paid to the other state, OR
- Your home state's tax on that same income
Example:
- You're domiciled in Pennsylvania (3.07% flat tax rate)
- You earned $10,000 in Massachusetts (5.0% rate)
- Massachusetts taxes: $10,000 × 5.0% = $500
- Pennsylvania taxes on same income: $10,000 × 3.07% = $307
- Pennsylvania provides credit for $307 (the lesser amount)
- You still pay $193 more to Pennsylvania on that income
Net result: You pay the higher of the two states' rates, not both rates combined.
Which state gets credit?
Generally, your resident state (domicile) provides credit for taxes paid to non-resident states. The non-resident states get "first bite" at taxing income earned there, and your resident state provides the credit.
Credit limitations
Income limits: The credit only applies to income taxed by both states. If State B taxes income that State A doesn't recognize as income (or vice versa), no credit applies to that discrepancy.
No credit for same-state income: If you live and work in the same state all year, no other-state credit applies—there's nothing to credit.
Reciprocal agreements
Some states have reciprocal agreements allowing residents of one state to work in the other without that state's taxation.
Examples of reciprocal states:
- Pennsylvania and New Jersey
- Wisconsin and Illinois, Indiana, Kentucky, Michigan
- Virginia and several neighboring states
- Others (check specific state requirements)
How it works: If you're a New Jersey resident working in Pennsylvania, you file exemption form with your Pennsylvania employer. Pennsylvania doesn't withhold tax. You only file and pay New Jersey resident return.
Benefit for students: If your domicile state and college state have reciprocity, you avoid filing in the college state entirely.
Establishing or changing domicile
Some students want to change domicile—establishing residency in their college state to qualify for in-state tuition or to become domiciled in a no-income-tax state.
Requirements for changing domicile
Changing domicile requires two elements:
- Physical presence in the new state
- Intent to make it your permanent home and abandon your former domicile
Actions demonstrating intent:
- Obtain driver's license in new state
- Register vehicle in new state
- Register to vote in new state
- Obtain residence for reasons other than attending school
- Accept permanent employment in new state
- Purchase property in new state
- Close accounts and sell property in old state
- File resident tax return in new state
Why changing domicile is difficult for students
School attendance doesn't establish domicile: Attending college is considered temporary presence. Schools are temporary by nature—you intend to leave when you graduate.
Financial dependence: If your parents support you financially and you return to their home during breaks, states view your parents' state as your domicile regardless of where you attend school.
Intent is critical: States don't accept domicile change simply to avoid taxes or qualify for in-state tuition. You must genuinely intend to make the new state your permanent home indefinitely.
When domicile change is legitimate
After graduation: When you accept permanent employment in your college state after graduation and take affirmative steps (license, registration, voting, lease/purchase residence), you successfully change domicile.
Independent students: If you're financially independent, support yourself, and intend to remain in your college state permanently (not just for school), you may successfully change domicile during college.
Common mistakes and strategies
Mistake #1: Not filing when required
Students assume they don't need to file in states where they earned small amounts of income. State filing thresholds vary significantly—some states require filing with as little as a few hundred dollars of income, while others set thresholds at or near the federal standard deduction amount (over $14,000 for single filers in 2025).
Solution: Check the specific filing requirements for every state where you had income or were present 183+ days. Each state sets its own threshold based on gross income, adjusted gross income, or other measures, and these rules change annually. Visit the state's Department of Revenue website or consult a tax professional to confirm current-year requirements.
Example: California requires filing if gross income exceeds approximately $20,000 for single filers, while Georgia requires filing if gross income exceeds just $5,000. Some states like New York have different thresholds for residents versus non-residents. Missing a filing requirement—even in low-threshold states—can trigger penalties and interest.
Mistake #2: Filing as resident in multiple states
Students file full resident returns in both their domicile state and college state, paying full resident taxes to both without claiming credit.
Solution: File resident return in domicile state only. File non-resident (or part-year resident) returns in other states. Claim credit for taxes paid to other states on your resident state return.
Mistake #3: Not tracking days present
Students don't track days present in each state, making it impossible to determine if they meet 183-day thresholds.
Solution: Maintain a calendar or spreadsheet tracking days present in each state throughout the year.
Mistake #4: Using parents' address when actually living elsewhere
Students use parents' address on all documents while actually living and working in a different state year-round after graduation, creating residency confusion.
Solution: Update addresses to reflect where you actually live when you establish a new permanent residence.
Strategy 1: Leverage no-income-tax domicile
If you're domiciled in a no-income-tax state (Texas, Florida, etc.), maintain that domicile throughout college to avoid domicile-based taxation.
Strategy 2: Use reciprocal agreements
If your home state and college/work state have reciprocity, file exemption forms to avoid withholding and filing in the reciprocal state.
Strategy 3: Minimize income in high-tax states
If possible, structure your work arrangements to minimize income earned in high-tax states. Remote work performed from your low-tax domicile state is better than in-person work in high-tax states.
Strategy 4: Time moves strategically
If changing domicile, do it early in the tax year (January) rather than mid-year to simplify filing and maximize benefits of the new domicile.
Strategy 5: Document domicile maintenance
Keep records proving you maintained your original domicile: voter registration, driver's license renewals, vehicle registrations, return visits, family ties.
Special situations
Working remotely from parents' home during semester
During COVID-19, many students worked remotely from parents' homes while taking online classes. This continues for some students.
Tax treatment: Income is taxed where the work is physically performed (parents' state), not where the employer is located (usually).
Exception: New York's "convenience of employer" rule taxes remote work if the employee works remotely for their own convenience rather than employer necessity.
Study abroad and international students
U.S. students studying abroad: Days outside the U.S. don't count toward any state's 183-day threshold. Maintain domicile state filing obligations but may have less state income during study abroad terms.
International students in the U.S.: Federal tax residency (Form 1040-NR vs. Form 1040) is determined first. State residency follows based on state-specific rules. International students are subject to state income tax on state-source income regardless of immigration status.
Scholarships and grants
Federal tax: Scholarships for tuition and fees are tax-free. Amounts for room and board are taxable.
State tax: Most states follow federal treatment. Some states (Pennsylvania, New Jersey, others) fully exempt all scholarship income.
Residency impact: Scholarship income is typically sourced to the state where the school is located.
How NSKT Global can help with state tax residency
NSKT Global specializes in multi-state tax preparation for college students, helping navigate complex residency determinations and multi-state filing requirements.
We offer comprehensive state tax services including domicile vs. residency analysis determining your domicile and which states can claim you as statutory resident, multi-state return preparation filing resident, part-year resident, and non-resident returns across multiple states, credit for taxes paid optimization claiming maximum credits for other-state taxes to minimize double taxation, and 183-day tracking assistance maintaining records of days present in each state for residency determinations.
Whether you attend college in a different state than your parents' home and need multi-state filing guidance, worked summer internship or co-op in a third state creating three-state filing requirements, are graduating and moving to new state requiring part-year resident returns, or work remotely while attending college and need to determine which state taxes your income, our expertise ensures you correctly determine domicile vs. statutory residency in each state, file all required returns as resident, part-year resident, or non-resident, maximize credits for taxes paid to other states eliminating double taxation, and maintain compliance across all states where you have filing obligations while minimizing overall state tax liability.
