An out of state college student earned, where to file that income?

[rswelter]

our dependent son earned income out of state while attending college.  he was given a Ma. W2 for his earnings though his residence is Pa.  his income does not meet the federal filing threshold of 12,950 being fully enrolled in college. where should he file, Pa. or Ma?. 

does his W2 address need to be corrected to show his home residence and file in Pa.?

do we need to file an extension anywhere?

thanks in advance.

[Hal_Al]

Q. Where should he file, Pa. or Ma?. 

A. Both. He file a MA non resident return and pays MA tax. He files a PA return and calculates  tax on the same income. But, PA gives him a credit, or partial credit , for the tax he paid to MA.  Prepare the MA return first, so that TT can calculate the credit. 

Q. Does his W2 address need to be corrected to show his home residence and file in Pa.?

A. No. Using his home address on the tax forms will be enough.

[rswelter]

thanks Hal_Al

I was hoping to simplify the process by just filing in one state. 

What your saying makes sense. 

When is he required to file his own Federal, is it just the 12,950 hurdle? 

[DawnC]

Yes.   He may not have a federal filing requirement, but you have to file federal if you want to e-file the state returns.   And, he can get back any taxes withheld in Box 2 by filing the federal return.  

[rswelter]

the box 2 taxes were 20pct.  looks like I will have to amend my return federally ,remove him.

Should he file extensions for Ma., Pa and IRS till we get this figured out?

[TeresaM]

If he needs extra time and files an extension, it will waive failure-to-file penalties until October 18th. However, if you would have owed tax on April the 18th, the IRS will assess monthly late payment penalties and interest until you pay.

I recommend to extend your return with a TurboTax Extension and also pay your best guess of anything you may owe. If you overpay, it will be refunded. If you underpay, it will only calculate penalties on the part that was not paid.

TurboTax has a tool called TaxCaster to give you an idea of your tax liability and/or refund. You can vary different items and see how that could impact your return. Click for TaxCaster an extension, it will waive failure-to-file penalties until October 18th. However, if he would have owed tax on April the 18th, the IRS will assess monthly late payment penalties and interest until you pay.

I recommend to extend his return with a TurboTax Extension and also pay your best guess of anything he may owe. If you overpay, it will be refunded. If you underpay, it will only calculate penalties on the part that was not paid.

The states vary according to their due dates and if you have to file an extension or if it is automatic. You can look it up on this TurboTax Help article and if a state extension needs to be filed, it should be an option at the bottom of the federal extension screen. 

[rswelter]

thanks,

what's the easiest way to recalculate my 2022 return without my dependent son as mentioned above.  Should I use the "amend a return" link or start a new return and compare?

thanks...

[Hal_Al]

It's not clear why you're removing him as a dependent on your tax return.  The fact that he is required to file a tax return, of his own,does not disqualify him as your dependent. There is a box on form 1040  that he checks telling the IRS that he can be claimed as a dependent (TT handles this).

With the tax law change, effective 2018, most students will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased. However, you only qualify for an education credit or deduction, if you are not a dependent.

[rswelter]

thanks, I was unclear on this issue.