Rhode Island Help

[S T]

Any one out there for Rhode Island - Resident vs Non Resident

I have a taxpayer that has maintained their Residency in Ohio - home, drivers license, voting registration etc. However, the spouse obtained a job in Rhode Island and commutes back and forth (Employer pays for Housing and Commuting through Gross Up on W-2)

The job has lasted now over 12 months, and it appears that sometime in 2011 the taxpayer and spouse will give up their Residency in Ohio and move to Rhode Island

Question is for 2010 filing. Husband is definetly Ohio Resident ( not working anywhere other than Ohio) Spouse commutes (as stated above) to Rhode Island, spends a few weeks, then commutes home. Spouse's sole income is from Rhode Island Employer

So is spouse a Resident or Non-Resident of Rhode Island for tax filing purposes. If I read the instructions - RI states "even though domiciled outside of Rhode Island, if maintains a permanet place of abode within the State and spends a total of more than 183 days, would be a Resident" - She doesn't necessarily have a "permanent place of abode" it i temporary, but she has spent more than 183 days. She does not use the RI address for any purpose, and I believe the lease is in the Employer's name as they are paying for the housing.

But then in looking at non-resident, "domicile is found to be a place an individual regards as permanent home, the place to which they intend to return after a period of absence. A domicile continues until a new fixed and permanent home is acquired. - No change of domicile results from moving to a new location if the intention is to remain only for a limited time even if it is for a relatively long duration. For a married couple, normally both individuals have the same domicile."

A little confusing - so I am thinking I can still file the spouse as a non-resident of RI and still a permanet resident of Ohio.

Can any one assist on this.

Thanks,

Sandy

[Gary2]

I believe the lease is in the Employer's name as they are paying for the housing.

That would seem to be the key question. If she signed a traditional one year lease with renewal option, that would be considered a permanent place of abode regardless of intent. Anything else would likely be an issue of (sparse) case law or DOR rulings, but my intuition suggests that if the lease is in the employer's name, then she's not maintaining any abode.

[S T]

More

Thanks Gary,

New info - the actual lease is in the spouse's taxpayer name, however, the employer makes the payment direct to the landlord.

I have no Ohio Income which is what taxpayers claim as their resident state, all of the income is from Rhode Island

Anyone have any thoughts?

Sandy

[S T]

Any More Info

Bumping this up
guess we don't have many Rhode Island Preparer's on the Board

Next move is to call Rhode Island Dept of Revenue for clarification

Any one have any more thoughts???
Sandy

[Nashville]

Calculate Both Ways

Sandy there may not be many people who can answer this question, and Gary2 knows more about RI than most of us. I have found out that his state and RI have revenue people that squabble with each other, very common in the northeast. In fact, I doubt the RI Revenue people could give you a straight answer and if so it would hardly be objective.

Have you tried filing under all scenarios? I would imagine OH and RI both will gross up all income, no matter where earned, so as to maximize the tax bracket. Then apportion the tax downward depending on percentage of income in each state. At some point the interjection of deductions and filing status would enter into the calculation, and I would think these would be very minor compared to the apportionment of income.

Having calculated under all scenarios, and without clear-cut guidance to the contrary, I would choose whichever seems fairest to you, and of course leaning to the situation with the least tax liability.

[Gary2]

It's a facts, circumstances, and mood of the judge question. I wouldn't go out on a limb with a question like that that won't get a firm answer until someone decides to litigate it.