Hi,
We have a daughter attending college full-time out-of-state in Iowa; we are Wisconsin residents. She has earned income from working on campus (approx $1,800, no taxes withheld), and she is claimed as our dependent. We are unsure if she needs to file taxes as a non-resident with Iowa (and if so, if we need to do anything additional on our side as claiming her as a dependent.)
We reviewed the Iowa DOR website - using Form IA 126, she did earn more than $1,000 as a non-resident, but also did not earn more than $5,000 taxable as a dependent, so we were originally thinking she does not need to file with IA. However, regarding the $5,000 threshold, it references being "claimed as a dependent on another person's Iowa return"; she'll be a dependent on our WI return though, not an Iowa return, so that's where we are unsure.
Thank you so much for any help.