College Student Question

[Lisaduka]

Our daughter is a permanent resident of Georgia,  going to university in Alabama. She had a job from January-May 2024 while she was attending university.  She got an internship June - July in Arizona, with the same company ( they are based in AZ) that she had been working with in Alabama. We are having a hard time trying to figure out how to file her taxes. She has two W-2s , one from AL (job while attending school) and one from from AZ (job during internship).

The W-2 from Alabama has her two combined incomes from both AL and AZ as well as Federal Tax, Social Security and Medicare (listed in boxes 1-6).  In boxes 16-19, It has her income and state and local taxes from only Alabama.
The Arizona W-2 has zeros in boxes 1-6 and in boxes 16-17, her income and state taxes, but only for Arizona. 

How in the world is she supposed to do her taxes. Is she suppose to file taxes in both Alabama AND Arizona? And if so, how would she go about this filing? 

[CatinaT1]

Being away for school is considered a temporary absence and doesn't effect residency.

She is a full-year resident of Georgia. Georgia will tax all her income but give her credit for taxes paid to another state. She will also file non-resident state returns for any state she worked in.

Where you physically work determines the state source income, not where the company is located. (For example, Walmart is based in Arkansas, but you don't pay Arkansas tax unless you physically worked there.) It sounds like she worked in Alabama while earning the income reported on both W2s. Is that correct? Or did she physically work in Arizona also?

She would file a non-resident Alabama return. She likely has withholdings from Alabama reported in box 17.

It sounds like the Arizona W2 only reports state information, so if she physically worked in Arizona, she would also file a non-resident Arizona return.

I'm a bit confused on the W2 situation, so if you you have additional questions, please clarify the W2 information.

[Lisaduka]

Yes she physically worked in AZ  from June-July for Dillards.

ALABAMA W-2 has her wages combined  ( box 1, 3, 5 ) from her working at Dillards in Alabama AND Arizona. 
Boxes 2,4,6  ( Federal, SS, and Medicare withheld) 

Box 16 and 18 (wages from only Dillards in Alabama)

Box 17 and 19 (state and local Alabama taxes withheld)

ARIZONA W-2  (boxes 1-11 are zeros

Box 16 has wages from Arizona only

Box 17 state income tax from Arizona only

So, are you saying she needs to file Alabama AND Arizona returns?

[Vanessa A]

Did she physically work in Alabama?  

Yes, she will need to file a AZ return since she physically worked in AZ

If she did NOT work physically in AL, then she will need to file a return to claim any taxes, if any, she had withheld back.  To do this, you will include only the taxes withheld and adjust the income to $0

If she DID work physically in AL, then you will include the wages she earned in AL.  Since it is combined, when it comes to the AL adjustment income question, you will need to deduct the amount that was for AZ. 

[Lisaduka]

Yes she physically worked in Alabama AND also in Arizona , hence the (2) separate W-2s, one from Alabama and one from Arizona (from the same company)

[CatinaT1]

So you really have one W2 with two states reported. (I understand you have two forms, but the second form is only for the 2nd state information).

You will enter the W2s as one W2. Imagine the W2 this way, with the two states both on one W2.

You will file a nonresident Arizona return, a nonresident Alabama return, and a resident Georgia return. 3 State Returns.

When you get to the state entry, you will want to start with nonresident states first. This is because Georgia will give you credit for the tax that is paid to Arizona and Alabama.