Relatively simple question: Michigan Resident, New York Internship

I've searched this forum regarding my situation and found postings relavent to information I need, but alot more complicated than I'm use to. I've ony been doing taxes for a few years and have very limited knowledge and have always filed the simpliest forms since I'm still a student/dependent of my parents. Basically this is my situation:

My permanent address is in Michigan, but I went to college in New York. During college, I had some summer internships so I just filed New York City/State full time resident taxes since I lived there for pretty much the entire year, all while my parents still claimed me as a dependent. Now, I'm in grad school in California but I've been working at an internship in New York again for the fall. In total, I would have worked in New York for in total ~5 months, spent ~1 month in Michigan before starting school, and ~6 months in California as a student, not working at all for 2007. Basically, I'm just wondering if I can file taxes as a Michigan resident while filing a part-time resident for New York (I believe to qualify as full time resident you have to be living in NY for 6+months). If so, can I still get credit for the taxes I paid to New York State/City, similar to how people who live in NJ but work in NY do their taxes?

Thanks in advance for advice.

Reply to
payton.ong
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Check the NY residency rules. I think that if you maintain a residence in NY, you only have to be present in NY for 30 days.

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Reply to
Benjamin Yazersky CPA

I gather you have no income other than your earnings (IOW, you're not a trust fund kid ).

Depending on your living arrangements while you were going to school in NY, it probably was never necessary for you to file as a NY state or NYC resident. Of course, your earnings there were subject to NY state tax anyway, but nonresidents are not subject to the NYC individual income tax. Even though you spent more than 183 days of each year in NY, your domicile probably remains in MIchigan and you may not have maintained a permanent place of abode in NY. If you were living in a dormitory or an apartment rented on a short-term lease, and were in NY only for the purpose of completing a degree program that would take a limited time to finish, you probably were never a NY resident for tax purposes.

You should file a nonresident NY state return for 2007, and not file as a NYC resident. If NY asks questions about your residence status, you respond that you did not maintain a permanent place of abode in the state or the city and were present there for less than 183 days in

2007.

You are probably still domiciled in Michigan, and under Michigan law you are still a tax resident. You should file as a full-year Michigan resident and claim a credit for the tax you pay to NY on your NY source income, whether you file in NY as a resident or as a nonresident.

Unless you have moved to California with the intention of making it your permanent home, your domicile remains in Michigan. If you are in California only for the temporary purpose of completing a graduate degree program, and intend to leave the state when that is accomplished, you are not a California resident. (California defines a resident as anyone who is present in the state for a purpose that is not temporary or transitory; there is no 183-day rule.) Since you had no earnings in California in 2007, and you are a nonresident, you do not have a California filing requirement for 2007.

Of course, if I've misinterpreted your facts, you could be in California for a purpose that is not temporary or transitory and therefore be a resident. (You could be a California resident under California's rules and still be a Michigan resident under Michigan's rules.) However, if you had no income during the part of the year that you were a resident, you have no tax liability. You may be wise to file a nonresident California return just to start the running of the statute of limitations.

Katie in San Diego

The foregoing isintended for educational purposes only and does not constitute legal or professional advice. Nothing contained herein is intended to be used, or can be used, by any person to avoid penalties that may be imposed under federal or any state law.

Reply to
Katie

Wow, thanks alot of the great and though explanation. Your assumptions about me were all correct, I didn't maintain any permanent resident while in NY or CA, always either subletting or living in dorms. I simply filed NY state and city taxes just because I assumed I had to do so and my parents and me do our taxes ourselves without the help of an accountant. Even though these were all internships, they were at major investment banks so my salary was significant enough that I probably would have received a much higher return had I filed as a MI rather than NY/NYC resident.

One question I still have is regarding my current internship. I again wrote down my temp NYC address for the tax withholding so I'm getting taxed for NYC also. Will the city tax still get credited toward my MI return or is the tax money pretty much lost?

Thanks again for all your help!

Reply to
payton.ong

You should file as a nonresident in NY and NYC. You'll get your NYC withholding back.

However, if you were a statutory resident of NYC, Michigan would give you credit for the NYC tax. Of course, the total credit you get from Michigan would not be more than the Michigan tax on the "double taxed" income.

Katie

The foregoing is intended for educational purposes only and does not constitute legal or professional advice. Nothing contained herein is intended to be used, or can be used, to avoid penalties that may be imposed under federal or any state law.

Reply to
Katie

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