As an out-of-state college student earning income, should my current mailing address be my permanent address or the address my packages go to right now?

[DawnC0 · Accepted solution]

When filing your taxes, use your home address in your home state.  You are not considered a resident of your college state.  You are considered ''temporarily away'' from your home state if you intend on returning after college.  Since you are earning some income while in your temporary state, you will file a non-resident income tax return for your college state and a resident tax return for your home state.  After completing your federal return, TurboTax will walk you through your state returns.  Prepare your college state return before your home state return so credits are applied properly.  

Enter home state address in TurboTax and indicate that your earned money in your college state and the program will generate the correct state returns and forms you need.  

[ylundstrom]

What if you do not intend to return to your home state after college? The plan is to remain in your college state. Do you still file as a nonresident?

[GiseleD]

Since you are filing information based on your 2019 activity, you will use the address for your home state on your return. You will also file as a nonresident in your college state.

Let's say you graduate in 2020, and you make your college state your permanent home state. You will then make the college state address your home state address on your 2020 return. 

@ylundstrom

[Amy Badlands]

What should I do if I filled in my home state first before filling out the college state? Delete the home state and restart? It appears that my college income is being used in my home state.....

[Hal_Al]

General answer: Go thru the entire home state interview again. In particular, the part about a credit for taxes paid to another state. 

For a specific answer, we need to know which two states you're dealing with

[Amy Badlands]

Home state MD. Part year resident for college in KY. Worked PT jobs in both states. Her KY jobs got 1099-NEC so she pays Self Employment taxes. That income is business income. Federal taxes are square. Did MD taxes first then KY. I don't see the 1099-NECs show up on the KW-2 (lists W-2 and 1099). Not sure if the 1099 should show up as wages/income. No state tax was taken out for that?

[Cynthiad66]

No.  Form 1099 income should not show up as W-2.  Form 1099-NEC is for self employment income.  No taxes are withheld on self-employment income.  It is not a W-2.  You should file a form Schedule C for this income.

Form 1099 NEC Instructions

[Amy Badlands]

Understand the difference between W2/1099. I'm specifically trying to find resolve the KY state tax.

[AnnetteB6]

Since no KY state taxes were withheld from the Form 1099-NEC, it will not be included on the KW-2 form. 

The business income included on the Federal return on Schedule C is part of the Federal Adjusted Gross Income (AGI), which is the starting point for the KY state tax return.  As you go through the KY return, you should be able to indicate that the business income is attributable to KY.  

@Amy Badlands

[mkeh004]

Turbo Tax did not generate the proper returns. We needed a return for our daughter's home state and the state where she went to college. We only got the state where she went to college. 

[Hal_Al]

She does not need to file a tax return for the state where the college is located, unless she made money in that state.  Depending in what the two states are, maybe not even then (reciprocity may apply). 

In the dependent interview, in the personal info section, you will be asked if she made money in another state. If you answer yes, and identify the state, TurboTax will later ask you to buy the 2nd state program, and prepare the 2nd state return.  She must also report the 2nd state income on her home state return, but the home state will give her a credit, or partial credit for the income tax paid to the work state.  Prepare the work state return before preparing the resident state return. 

Note: any taxable scholarship is only taxable by the home state, not the college state.