# In what state should I file my taxes? **URL:** \ **Category:** Factual Questions\ **Created:** [March 9, 2009, 5:07pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845 "2009-03-09T17:07:10Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Kyla](https://avatars.discourse-cdn.com/v4/letter/k/eada6e/32.png) [@Kyla](https://boards.straightdope.com/u/Kyla)\ **Post date:** [March 9, 2009, 5:07pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/1 "2009-03-09T17:07:10Z")
I finished serving as a Peace Corps Volunteer in the middle of last year. My entire income in 2008 was as a PCV in Bulgaria. Although I live in Michigan, I am not a “resident” of Michigan - according to the University of Michigan, I am a resident of Illinois, which is where I lived before I went to Bulgaria. But I am registered to vote in Michigan. And I haven’t had an actual Illinois address since 2006. OTOH, I am loathe to file my taxes in Michigan because they’re charging me such a ridiculous amount of money to go to school here. And I’m annoyed at the state of Illinois for being a lot of crooks and also because they’re currently harassing me about my taxes from last year (WHICH I PAID AND THEY ARE IDIOTS). Thoughts? ---
**Author:** ![msmith537](https://avatars.discourse-cdn.com/v4/letter/m/d9b06d/32.png) [@msmith537](https://boards.straightdope.com/u/msmith537)\ **Post date:** [March 9, 2009, 5:13pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/2 "2009-03-09T17:13:19Z")
IANA lawyer or accountant, but you typically file in whatever state your permanent residence is in. It doesn’t matter where you are registered to vote. ---
**Author:** ![ShibbOleth](https://avatars.discourse-cdn.com/v4/letter/s/848f3c/32.png) [@ShibbOleth](https://boards.straightdope.com/u/ShibbOleth)\ **Post date:** [March 9, 2009, 5:17pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/3 "2009-03-09T17:17:20Z")
It also doesn’t really matter what the University of Michigan says. Their rules for determining in-state tuition is not likely to be tax authority relevant. Is there a school tuition advantage to you eventually becoming a Michigan resident? I’d check the rules from the state of Illinois and the state of Michigan. You may well be required to file in both states (or neither). ---
**Author:** ![Reply](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/reply/32/15952_2.png) [@Reply](https://boards.straightdope.com/u/Reply)\ **Post date:** [March 9, 2009, 5:18pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/4 "2009-03-09T17:18:53Z")
(Ignorant question) Do you have to pay state, as opposed to federal, taxes even if you didn’t live or earn anything there the whole year? ---
**Author:** ![madmonk28](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/madmonk28/32/20811_2.png) [@madmonk28](https://boards.straightdope.com/u/madmonk28)\ **Post date:** [March 9, 2009, 5:23pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/5 "2009-03-09T17:23:53Z")
You also should explore whether you are exempt from any taxes. I live overseas and am exempt on a large portion of federal and DC taxes. ---
**Author:** ![pulykamell](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pulykamell/32/3166_2.png) [@pulykamell](https://boards.straightdope.com/u/pulykamell)\ **Post date:** [March 9, 2009, 5:56pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/6 "2009-03-09T17:56:50Z")
> [@madmonk28](#): > > You also should explore whether you are exempt from any taxes. I live overseas and am exempt on a large portion of federal and DC taxes. Good point. If you’re talking about the foreign earned income exclusion, that requires either being a foreign resident for an uninterrupted tax year, or the physical presence test, which requires being out of the US for 330 days in a 12-month period. It also only covers foreign earned income, as far as I understand it (and as far as it applied to me, when I lived overseas.) It sounds like **Kyla** might be able to qualify, but it depends on the factors above. ---
**Author:** ![KneadToKnow](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kneadtoknow/32/3999_2.png) [@KneadToKnow](https://boards.straightdope.com/u/KneadToKnow)\ **Post date:** [March 9, 2009, 5:58pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/7 "2009-03-09T17:58:11Z")
> [@Kyla](#): > > OTOH, I am loathe to file my taxes in Michigan because they’re charging me such a ridiculous amount of money to go to school here. Since you asked for “any thoughts,” I will pipe up with this one: filing income tax (even if you don’t have to pay) in Michigan will go a long way toward establishing you as a resident of Michigan, more than likely putting a significant dent in what they charge you to go to school there. ---
**Author:** ![Kyla](https://avatars.discourse-cdn.com/v4/letter/k/eada6e/32.png) [@Kyla](https://boards.straightdope.com/u/Kyla)\ **Post date:** [March 9, 2009, 6:04pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/8 "2009-03-09T18:04:51Z")
> [@KneadToKnow](#): > > Since you asked for “any thoughts,” I will pipe up with this one: filing income tax (even if you don’t have to pay) in Michigan will go a long way toward establishing you as a resident of Michigan, more than likely putting a significant dent in what they charge you to go to school there. Nah, there is no way they are going to let me change my resident status. ---
**Author:** ![KneadToKnow](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kneadtoknow/32/3999_2.png) [@KneadToKnow](https://boards.straightdope.com/u/KneadToKnow)\ **Post date:** [March 9, 2009, 6:17pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/9 "2009-03-09T18:17:44Z")
Why not? People move. ---
**Author:** ![Kyla](https://avatars.discourse-cdn.com/v4/letter/k/eada6e/32.png) [@Kyla](https://boards.straightdope.com/u/Kyla)\ **Post date:** [March 9, 2009, 6:21pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/10 "2009-03-09T18:21:18Z")
> [@KneadToKnow](#): > > Why not? People move. But if you moved for _education purposes_, you cannot become a resident of the state. Period. (At least in Michigan, which has very strict residency requirement.) ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [March 9, 2009, 6:22pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/11 "2009-03-09T18:22:43Z")
> [@KneadToKnow](#): > > Since you asked for “any thoughts,” I will pipe up with this one: filing income tax (even if you don’t have to pay) in Michigan will go a long way toward establishing you as a resident of Michigan, more than likely putting a significant dent in what they charge you to go to school there. Oddly enoough, that is [specifically excluded as a residency mitigator by the UoM](http://www.umich.edu/~regoff/resreg.html): > [@](#): > > 1. Circumstances that do not demonstrate permanent domicile > > The circumstances and activities listed below are temporary or indeterminate and do not demonstrate permanent domicile. Individuals whose presence in Michigan and claim to Michigan resident status are based solely on one or more of the following are not eligible for resident classification: > > enrollment in high school, community college, or university. > participation in a medical residency program, fellowship, or internship. > employment that is temporary or short-term or of the type usually considered an internship or apprenticeship. > employment of the spouse or partner of an individual who is in Michigan for temporary pursuits. > employment in a position normally held by a student. > military assignment in Michigan for the applicant or the applicant’s spouse, partner, or parent (see section D for special military provision). > \*\*payment of Michigan income tax and/or filing of Michigan resident income tax returns. \*\* > presence of relatives (other than parents). > ownership of property or payment of Michigan property taxes. > possession of a Michigan driver’s license or voter’s registration. > possession of a Permanent Resident Alien visa. > continuous physical presence for one year or more. > statement of intent to be domiciled in Michigan. ---
**Author:** ![KneadToKnow](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kneadtoknow/32/3999_2.png) [@KneadToKnow](https://boards.straightdope.com/u/KneadToKnow)\ **Post date:** [March 9, 2009, 6:26pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/12 "2009-03-09T18:26:29Z")
> [@Kyla](#): > > But if you moved for _education purposes_, you cannot become a resident of the state. Period. (At least in Michigan, which has very strict residency requirement.) > [@Fear\_Itself](#): > > Oddly enoough, that is [specifically excluded as a residency mitigator by the UoM](http://www.umich.edu/~regoff/resreg.html): Wow. That is _whack_. Ignorance fought, y’all. Damn. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [March 9, 2009, 6:52pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/13 "2009-03-09T18:52:46Z")
> [@Kyla](#): > > But if you moved for _education purposes_, you cannot become a resident of the state. Period. (At least in Michigan, which has very strict residency requirement.) North Carolina was similarly strict (this was in the early 80s) when **Typo Knig** wanted to establish residency while in grad school. IIRC, the main reason he was able to do so was the fact that I had lived and worked in NC for a year or so before we got married, so clearly I was considered a resident. Other grad students were much less successful in establishing residency. We knew one fellow who only got it by arguing that his 2 year old son - who was born in NC - was a resident but he himself was not considered one. Re the OP: Where do you have your driver’s license? Do you have any other legal presence in either state? I’d say that if you’re registered to vote in Michigan, Michigan certainly considers you a resident (and simply registering, in my opinion, suggests you consider yourself a Michigander). ---
**Author:** ![Kyla](https://avatars.discourse-cdn.com/v4/letter/k/eada6e/32.png) [@Kyla](https://boards.straightdope.com/u/Kyla)\ **Post date:** [March 9, 2009, 6:54pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/14 "2009-03-09T18:54:45Z")
[QUOTE=Mama Zappa;10919942 Re the OP: Where do you have your driver’s license? Do you have any other legal presence in either state? I’d say that if you’re registered to vote in Michigan, Michigan certainly considers you a resident (and simply registering, in my opinion, suggests you consider yourself a Michigander).[/QUOTE] My driver’s license is from California. I have no other legal presence in…well, _any_ state, actually. ---
**Author:** ![Arnold\_Winkelried](https://avatars.discourse-cdn.com/v4/letter/a/3d9bf3/32.png) [@Arnold\_Winkelried](https://boards.straightdope.com/u/Arnold_Winkelried)\ **Post date:** [March 9, 2009, 7:04pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/15 "2009-03-09T19:04:27Z")
If you can pick any state you want, pick one of those small or negelected states. Show Rhode Island some love! Or be an Alaskan for a year. Or get a grass skirt and pretned you’re from Hawaii. Can you file from any state you want? Fill out the form “State of Confusion” and send it to the IRS that way. The people at the IRS have a great sense of humour and love jokes on the tax form. ---
**Author:** ![anson2995](https://avatars.discourse-cdn.com/v4/letter/a/c77e96/32.png) [@anson2995](https://boards.straightdope.com/u/anson2995)\ **Post date:** [March 9, 2009, 7:05pm UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/16 "2009-03-09T19:05:27Z")
I think you have to file a state tax return in Michigan, since you seem to be saying that you live there now and have not lived in any other state since 2006. Even though the UofM considers you a non-resident, I think the state of Michigan considers you a resident by most other standards. State colleges generally won’t let out-of-state students establish residency through any means, since they are subsidized by state tax dollars. But as far as everyone else is concerned, you are a Michigan resident. Did the Peace Corps withhold any state or local taxes from your pay? ---
**Author:** ![dracoi](https://avatars.discourse-cdn.com/v4/letter/d/90db22/32.png) [@dracoi](https://boards.straightdope.com/u/dracoi)\ **Post date:** [March 10, 2009, 2:05am UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/17 "2009-03-10T02:05:17Z")
You might be required to file returns in multiple states. I’m not familiar with income tax rules for MI or IL specifically, but many states tax you on income you earn in the state, even if you are not a resident. (And as far as Illinois goes… I can sympathize. I was there for a four-day convention in 2003. I filed and paid my $56 in sales tax collected, with a request to close the account. They didn’t close the tax account, and decided that I must have done so much business in 2004 that I should owe an estimated $85,000. This was only finally resolved - I think - about two months ago). ---
**Author:** ![Reply](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/reply/32/15952_2.png) [@Reply](https://boards.straightdope.com/u/Reply)\ **Post date:** [March 10, 2009, 2:08am UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/18 "2009-03-10T02:08:55Z")
> [@KneadToKnow](#): > > Wow. That is _whack_. Ignorance fought, y’all. > > Damn. That’s barbaric, man! :hugs his California residency: Zog forbid I ever need to move out of this state. > [@Arnold\_Winkelried](#): > > Fill out the form “State of Confusion” and send it to the IRS that way. The people at the IRS have a great sense of humour and love jokes on the tax form. Laugh out loud. I’m so thankful I _just_ swallowed that sip of water. ---
**Author:** ![Desert\_Nomad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/desert_nomad/32/177_2.png) [@Desert\_Nomad](https://boards.straightdope.com/u/Desert_Nomad)\ **Post date:** [March 10, 2009, 2:13am UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/19 "2009-03-10T02:13:45Z")
> [@Fear\_Itself](#): > > ownership of property or payment of Michigan property taxes. > possession of a Michigan driver’s license or voter’s registration. > possession of a Permanent Resident Alien visa. > continuous physical presence for one year or more. > statement of intent to be domiciled in Michigan. If these don’t count, I would guess the current, legal population of Michigan is about 7. One year or more doesn’t count? So If I live there 20 years, vote and own property in MI and pay MI taxes, I am still not a resident. Wow. I guess you need the Golden Certificate and Seal Of Residency in the Great State Of Michigan personally bestowed upon you by the governor. ---
**Author:** ![Desert\_Nomad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/desert_nomad/32/177_2.png) [@Desert\_Nomad](https://boards.straightdope.com/u/Desert_Nomad)\ **Post date:** [March 10, 2009, 2:16am UTC](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845/20 "2009-03-10T02:16:12Z")
> [@dracoi](#): > > You might be required to file returns in multiple states. I’m not familiar with income tax rules for MI or IL specifically, but many states tax you on income you earn in the state, even if you are not a resident. > > (And as far as Illinois goes… I can sympathize. I was there for a four-day convention in 2003. I filed and paid my $56 in sales tax collected, with a request to close the account. They didn’t close the tax account, and decided that I must have done so much business in 2004 that I should owe an estimated $85,000. This was only finally resolved - I think - about two months ago). We quit doing trade shows in California too… same thought process comes out of Sacramento. [Next page](https://boards.straightdope.com/t/in-what-state-should-i-file-my-taxes/488845.md?page=2)