Client Issue / Wants residency in another state for in-state tuition

[bbrownatl]

One more question for the night. A client came to me today who lives in GA but has one child in college in AL and another going there next year. In 2014, he has purchased a condo in AL for his kids to reside while going to college. He is making it his “permanent address” of record (his words not mine) via getting his driver’s license changed, etc. but still pretty much living in GA. He wants to claim the AL address as his primary one. He gets paid by 1099 and wants to claim it as AL income though it is through a GA based company. This whole thing just smells bad to me. I pretty much told him that he would get nailed if he tried to support this if audited. Am I missing something here or is there some strategy that others implement so as to get in-state residency? The college apparently requires a copy of the tax return and it must indicate “Full Year Resident”. Any thoughts appreciated here.

[taxea]

takes more than a drivers license...if asked he would have to document where mail is sent, place of employment, property tax, voter registration, other children in school, etc

[ddoshan]

Based on your post sure sounds like a Georgia resident to me.

[Roberts]

Does your client actually have a residence in Alabama?
If the child is living and going to high school in Georgia, how does he think that's going to fly?

Alabama gives terrific scholarships to out of state residents. MASSIVE.
I have a cousin and a friends daughter are both going there. AL wasn't on their radar screen until the scholarship made it impossible to pass up.

[Burke]

Actually, forget the school's rules. It's tax fraud, unless he is going to file the income in both states. Some states have dual residency rules. The IRS considers where he works as his tax home. He neither lives nor works in AL, I am assuming. It doesn't matter where the company is. And if he is receiving financial aid.........well, I don't even want to go there.