Taxable scholarship federal and state?

[Ki28]

My son received $18,000 in taxable scholarship income (room and board) per his 1098-T, which lists his home address in his resident state.  He will report this as taxable scholarship income on his federal taxes.  Does he report this taxable scholarship income on his state taxes as well, and if so, which state? (resident state with no additional income, or non-resident state where he did receive a W-2 for income less than $500)?  

[Ki28]

Additionally, he attends college out of state and that is where the non-resident W2 is from.  

[Hal_Al]

Q. Does he report this taxable scholarship income on his state taxes as well?

A. Yes.

Q. If so, which state? (resident state with no additional income, or non-resident state where he did receive a W-2 for income less than $500)?  

A. Resident state only.  Taxable scholarship is not considered as earned in the state the school is located in. 

The $500 W-2 from the non-resident state must also be reported on his resident state return. 

This is the general rule: The income is work state (WS) source income since it was earned there. Resident States (RS) tax all their resident's income, regardless of where earned. You will file a non-resident tax return for the WS and report the WS income. You will file a full year resident return for the RS, reporting all your income. The RS will give you a credit, or partial credit for any tax paid to the WS.

What are the two states? If you have a reciprocal state situation, you do not file a non resident return. 

https://www.thebalancemoney.com/state-with-reciprocal-agreements-3193329

For state filing requirements, the WS does not, usually, go by what you earned in their state but by your total income . For example, if WS has a $10,000 filing requirement and your total income for the year was $15,000; you would be required to file even though you may have only had $500 of income in that state. 

For quick links to State Filing Requirements: https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/need-file-state-return/L446Rv...

[Ki28]

Thank you, that is very helpful!  
It is not a reciprocal state situation. 

He does not meet the WS filing requirements based upon his earned income in the WS.  You mentioned WS typically looks at total income. But to clarify, taxable scholarship income is part of total income for federal and RS income only?  

[Hal_Al]

Q. But to clarify, taxable scholarship income is part of total income for federal and RS income only? 

A. Not usually. Most states usually starts with the Federal AGI.  You'll need to look at your WS's specific rules.