Does a dependant child attending college out of state earns income working in that state have to file income taxes in both her home state and the state where she worked?

[MichaelMc · Accepted solution]

Yes, if the student has enough income to actually have a filing requirement. Many states use the federal thresholds, below, but others do not. You will want to check your states' Departments of Revenue for specifics.

Any state that has an income tax will tax the income earned within that state. The student's state of legal residence will tax all income, from any source. However, to ease the burden of double taxation, most states offer a tax credit to offset the tax paid to the nonresident state.

If your child is not being claimed by you or anyone else as a dependent, she must file a federal tax return if her gross income is at least $10,350 for 2016.

If your child is being claimed as a dependent, she must file a return if any of the following apply.

1. Her unearned income was more than $1,050.
2. Her earned income was more than $6,300.
3. Her gross income was more than the larger of—
1. $1,050, or
2. Her earned income (up to $5,950) plus $350.

Finally, if your child has earnings from self-employment of $400 or more, she must file a tax return and pay self-employment tax (the employer's and employee's share of Social Security and Medicare taxes) on that income.