I thought my son's taxes would be simple but I've hit a snag.
He is a 20 year old full-time student at a private university in Ohio. He is a member of the school-funded rocket team. It's not required for his major, but an extracurricular. In order to complete a required project for this team, he applied for a grant for supplies/materials and was granted $900 in TY 2021. He received a 1099-MISC for this grant.
We live in Virginia and he meets criteria for a full-time VA resident. He also had earned income in VA on school breaks of approx $8500 in 2021. He had withholding for Fed and VA from this job.
My questions:
1. Am I entering the grant correctly? I was surprised to see that once I entered it, he had a reduction in his refund. I assumed since his total income was below the standard deduction that he would get all of his withholding as a refund. Also TT says that VA and Ohio will both tax the grant.
2. Does he need to file an Ohio return? The only Ohio income is the $900 grant. I don't want to pay an additional $45 to purchase another state just for this one child. When I went to the Ohio state taxation website it seemed like he needed to. So I went to create an account to file for free. It says you need either an Ohio driver's license or your past year's ohio return to create the account. He has neither. Email sent yesterday to ask how to fix it. Got autoresponder that says 2-3 business days for reply, perhaps longer due to staffing.
