Is the income my daughter earned in another state (where she goes to college) subject to her home state tax? She paid state tax in the place where she goes to school?

Forum|Forum|7 years ago
June 3, 2019
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Anonymous

As a general rule, as long as she remains a "resident" of her "home state", she must file a tax return and pay tax to her state of residence on income earned in another state.

Her state of residence will allow her to claim a credit for any taxes paid to the other state on income taxed by both states. She would need to file tax returns in both states, and prepare the non-resident state return first.

Some states, however, have reciprocal agreements that allow taxpayers to avoid paying tax to both state and/or filing returns in both states.

This link explains reciprocal agreements and has another link that takes you to a list of state with those agreements:

https://ttlc.intuit.com/replies/3299954