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Level 2
February 18, 2022
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State tax to Georgia or Alabama

  • February 18, 2022
  • 3 replies
  • 53 views

This is for tax year 2020 - My son, just 20 years old at the time, worked in Alabama from Sept through the end of the year on a contract job.  During that time (4 months) he stayed in a hotel.  He was paid by a contractor out of Kentucky.  His address on his W-2 is our home address in GA (where he lived up till September).  He was hired through the union in GA to work in AL for that time frame.  I just wasn't sure if he should pay Alabama tax on the income or GA?

 

BTW, he also received a 1098-T (Tuition Statement).  Where would he report this info?

 

Thanks.

Best answer by Cynthiad66

@gbeck11 - Yes he will file his form 1098T because he may qualify for the AOTC credit.  I will show steps to file below.

 

 Only file the states that taxes were withheld.  He will file as a non-resident of those states and a resident of Georgia since that is where he maintained his residence.

 

Your domicile is your permanent home. The general rule when you move to a new state is that, for state tax purposes, you maintain your old domicile until you establish a new domicile in the new state. A temporary residence, such as a hotel, does not constitute a change in domicile.

 

How to file your Form 1098-T

 

 

Here's how to enter your 1098-T:

  1. Open or continue your return
  2. Select Search and search for 1098t 
  3. Select the Jump to link in the search results
  4. On the Do you want to enter your higher education expenses? screen, answer Yes
  5. Answer Yes to Did you get a 1098-T for the year? and Continue
  6. On the next screen, you can choose how you'd like to add your 1098-T. You can upload a digital copy from your computer or type it in yourself. Select which option you'd like and Continue
  7. If you need to enter a 1098-T for someone else, continue through the screens until you get to the Your Education Expenses Summary screen, then select Add A Student

Some important tips about entering this form:

  • Enter your 1098-T exactly as is, even if the amounts are wrong (this is common). You'll get a chance to correct this info and enter additional expenses later on
  • Leave blank boxes blank. Don't enter 0 for any blank boxes on the form, as this generates errors
  • Parents: If the student listed on the 1098-T is your dependent, enter the 1098-T on your return, even if your dependent paid the tuition
  • Students: If you're not being claimed as a dependent, enter the 1098-T on your return regardless of who paid the tuition, unless it was your employer. In that case, just keep the 1098-T with your tax records

3 replies

gbeck11Author
Level 2
February 18, 2022

I just realized - on his PayStub, they took out for GA SITW (State Income Tax Withholding).

Alumni - Intuit
February 18, 2022

@gbeck11 - Yes he will file his form 1098T because he may qualify for the AOTC credit.  I will show steps to file below.

 

 Only file the states that taxes were withheld.  He will file as a non-resident of those states and a resident of Georgia since that is where he maintained his residence.

 

Your domicile is your permanent home. The general rule when you move to a new state is that, for state tax purposes, you maintain your old domicile until you establish a new domicile in the new state. A temporary residence, such as a hotel, does not constitute a change in domicile.

 

How to file your Form 1098-T

 

 

Here's how to enter your 1098-T:

  1. Open or continue your return
  2. Select Search and search for 1098t 
  3. Select the Jump to link in the search results
  4. On the Do you want to enter your higher education expenses? screen, answer Yes
  5. Answer Yes to Did you get a 1098-T for the year? and Continue
  6. On the next screen, you can choose how you'd like to add your 1098-T. You can upload a digital copy from your computer or type it in yourself. Select which option you'd like and Continue
  7. If you need to enter a 1098-T for someone else, continue through the screens until you get to the Your Education Expenses Summary screen, then select Add A Student

Some important tips about entering this form:

  • Enter your 1098-T exactly as is, even if the amounts are wrong (this is common). You'll get a chance to correct this info and enter additional expenses later on
  • Leave blank boxes blank. Don't enter 0 for any blank boxes on the form, as this generates errors
  • Parents: If the student listed on the 1098-T is your dependent, enter the 1098-T on your return, even if your dependent paid the tuition
  • Students: If you're not being claimed as a dependent, enter the 1098-T on your return regardless of who paid the tuition, unless it was your employer. In that case, just keep the 1098-T with your tax records
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gbeck11Author
Level 2
February 19, 2022

Thank you so much!  I appreciate it.