topic fellowship funded by out of state university in Get your taxes done using TurboTax

fellowship funded by out of state university

sspencermo — Sun, 27 Aug 2023 02:46:02 GMT

My son received a fellowship from his undergraduate institution in Minnesota to do post-bac research at a university in Massachusetts. His paychecks will come from Minnesota, but the work will be done in Massachusetts. He's a Missouri resident. To which state does he pay state income taxes? Thanks in advance for any advice.

Re: fellowship funded by out of state university

NCperson — Sun, 27 Aug 2023 10:32:34 GMT

@sspencermo he files as a non -resident in MA and then files as a resident in MO/ if there is tax due to MA, there will be a credit on the MO tax return. Be sure to complete the MA tax return first.

How much does he expect to earn in MA? if less then $8000, there is no filing requirement, so he should fill out the forms to be 'exempt' from MA tax withholding

https://www.mass.gov/info-details/who-must-file-a-state-personal-income-tax-return

That all presumes he is not moving his residence to MA. what is a "post-bac research'? is this a summer job or is he moving there for a year with an undergraduate degree? if the latter is the case, why do you think he is still a MO resident? Look at the definition of a MA resident in the link below.

https://www.mass.gov/info-details/learn-about-legal-and-residency-status-in-massachusetts

Re: fellowship funded by out of state university

sspencermo — Sun, 27 Aug 2023 16:39:15 GMT

Thank you -- very helpful. Does he have to do anything with Minnesota (where the checks are technically coming from)? Or is considered to be earned in Massachusetts because that is the site of his work?

Re: fellowship funded by out of state university

NCperson — Sun, 27 Aug 2023 17:19:56 GMT

@sspencermo with few exceptions. tax obligations are 1) where you work or 2) where you live. Where the check comes from is irrelvant (otherwise every Disney employee working in Florida would be paying tax to California 😀)

Re: fellowship funded by out of state university

sspencermo — Sun, 27 Aug 2023 23:35:13 GMT

perfect -- thank you so much!