Understand that weather the parent claimed the student or not doesn't matter. If the parent *QUALIFIED* to claim that student, that's all the matters. The student must still select the option for "I can be claimed on someone else's return" when the student completes their own tax return.
The student's resident state is the state where the parent's live, if the parents *qualify* to claim the child. Again, it's doesn't matter if the parents actually claim the student or not. While the parents have a choice on this, the student does not have a choice.
For the student, several things to point out that are important.
- Do not file "ANY" tax return until you have completed *all* tax returns and are satisfied with the results.
- Complete the resident state return :LAST. This is necessary because most states have reciprocal tax agreements where your resident state will give credit for taxes paid to a non-residence state. So it's important to complete the resident state return *LAST* so that the program is aware you have a non-resident state return. That's the only way the program can check and "know" if there's a reciprocal tax agreement, and work that into your resident state return.
