Part Year Resident

[KC-CPA]

I am probably over thinking this one, I have a client who lived in Missouri for Jan - Aug, moved to Texas and lived there Sept - Dec. Her domicile would be MO for Jan-Aug and then Texas Sept-Dec.

First step I determined whether she was a resdident or non-resident. For Missouri purposes she is a resident as she live in MO for more than 183 days and it was her permanent address.

However, when I read the details about a part year, it just states that the domicile changed during the year (no days requirement). So based on that she would be a part year resident, then I can pick (as Missouri law states) whether I treat her as a non-resident (NRI form) or resident (MO-CR form).

She has no MO income, so her tax filing as part year non-resident would be $0. (base on no MO income)

If I filed her as a Part Year - and resident she would pay, $2200.

So, the real question I had was since she was in MO greater than 183 days and that qualifies her as a resident, I can still file her as PY since her domicile changed (No days requirement) and then select non-resident allowing her to pay no taxes.

[Roland Slugg]

I'll give you an opinion ... a guess, really ... because I have no clients in MO. Based on how states with which I am familiar handle similar situations ... particularly California ... I believe the "part-year" resident approach is the correct one. The allocation by days is for use when a T/P lives in two states ... such as a summer home in Idaho and a winter home in Arizona ... and spends time in both every year. Your don't have that situation. Your clients moved out of MO, making them non-residents of that state from that day on. For part-year residents, California taxes income from all sources while a California resident and taxes income from California sources while a non-resident. Missouri may do the same.