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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12693
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My son has taken a position with the fraternity that he was

Customer Question

My son has taken a position with the fraternity that he was in from college. He will be required to do extensive traveling for the position. The fraternity is providing an apartment for the 4 regional managers to stay when they are at corporate headquarters in Indiana. We live in Missouri. Would he still consider Missouri his home and file taxes for both states or would he be considered an Indiana resident.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.
Hi,...If this is just business travel (going there to attend meetings, short residencies, etc.) then he would still be a Missouri resident....(filing an Indiana non-resident return for the income earned while there, and then filing a resident return - reporting ALL income to Missouri - then Missouri provides a "tax paid to other states" credit)
Expert:  Lane replied 1 year ago.
See this from the MO Dept of Revenue:..."As a Missouri resident with income from another state, you may be able to claim a credit for tax paid to that state. Complete Form MO-CR and submit a copy of the other state's return(s) and all W-2 form(s) with your Missouri return."... Do you know how much time he will be spending there?
Customer: replied 1 year ago.
He will be traveling to the fraternities under his region 80- 90% throughout the school year. He will be using the apartment for when in town and during the summer months when school is out.
Expert:  Lane replied 1 year ago.
Sounds like he's changing his residence then....He may get into a situation where BOTH want to call him a resident (all state tax authorities have a propensity to claim that you are resident, so that they can collect income tax on all worldwide income)....The things that are used to determine residency are, voter registration, driver's license, where mail is received, belonging to clubs, gyms, etc in that state
Expert:  Lane replied 1 year ago.
I hope this has helped....Please let me know if you have any questions at all....If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit”)…I receive no crediting at all unless you rate in this way....Thank you!Lane……I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, since 1986
Expert:  Lane replied 1 year ago.
Make sense? ... Did you have other questions?
Customer: replied 1 year ago.
All of the above...license, voting, gym membership etc are all Missouri....I think I am going to try Missouri resident for the first year since I am estimating less than 50% of time will be spent at apartment in Indiana. He pays no rent for the apartment since 80-90% of his time is traveling. If after one year he keeps job, will consider him out of my house and on his own. What's your take on that?
Expert:  Lane replied 1 year ago.
Makes a lot of sense - certainly less "against the grain," so to speak, as he is currently a resident....I think I may have misunderstood the statement "He will be traveling to the fraternities under his region 80- 90% throughout the school year. He will be using the apartment for when in town and during the summer months when school is out."...If he's traveling FROM Missouri for all of this travel ... or even most of the time .... then it's a no-brainer that he's still not changed his residency....And then, given the current residency and all of the other "signs of residency;" voter registration. etc., being in MO still shows MO residency to a reasonable person (the test that's used for any stat that might contest residency)....I would stick with MO for the first year
Customer: replied 1 year ago.
Thank you. Very helpful....5 stars!!
Expert:  Lane replied 1 year ago.
You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!…That IS how we’re credited for the work here...Thank you,Lane…