Does a full time out of state student with a part time job file a non-resident tax return in the school state?

[DS30 · Accepted solution]

Yes - If you are in school in a state that is not your resident state and you work in the state where your school is located, then you would actually have to file a nonresident state income tax return in the state where your school and work are located (where you actually earned your money) and a resident state tax return (to report all income from all sources including your nonresident earned income. However, you would claim a state income tax credit on your resident state's income tax return for any state income taxes paid to the nonresident state on income that is being taxed in both states.

If you don't meet the filing threshold requirements for either state and you are just wanting to claim a refund of your state withholding, then you would just file a nonresident state income tax return to report your nonresident income. (No resident state return would be needed in this case).

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

https://ttlc.intuit.com/replies/3300797

[mattmoshe]

This is good - what if the non resident state - the state where the school is, has not state income tax, but the resident state does?  Does the student need to file an instate tax return and take a beating on the amount due?  All income was earned out of state and since the non resident state had no state income tax, nothing was taken out for this. Please advise. 

[Kchilds72]

Did you get an answer for this ? I need to know the exact same thing. 

[Hal_Al]

Q. What if the non resident state - the state where the school is, has no state income tax, but the resident state does?  Does the student need to file an instate tax return and take a beating on the amount due?  

A. Yes.

You report all your income on your resident state return, including the income earned in the other state. Your home state calculates tax on all your income, but gives you a credit, or partial credit, for tax you paid to the other state.

When you worked in a state without an income tax (e.g. Texas or Florida), there will be no credit, since there was no TX  or FL tax. In other words, having worked in a state without an income tax does not get you out of paying state tax on that income, to your home state.

[Hal_Al]

Q. Does a full time out of state student with a part time job file a non-resident tax return in the school state?

A. Yes.  There would be an exception, if the two states are reciprocal.  

https://www.thebalancemoney.com/state-with-reciprocal-agreements-3193329

This is the general rule: The income is work state (WS) source income since it was earned there. Resident States (RS) tax all their resident's income, regardless of where earned. You will file a non-resident tax return for the WS and report the WS income. You will file a full year resident return for the RS, reporting all your income. The RS will give you a credit, or partial credit for any tax paid to the WS.

When you worked in a state without an income tax (e.g. Texas or Florida), there will be no credit, since there was no TX  or FL tax. In other words, having worked in a state without an income tax does not get you out of paying state tax on that income, to your home state.

[SteamTrain]

@Kchilds72 

Yes.....in the situation that:

...you are a College student, and dependent of Parents who are living in a state with an income tax

......and you are a College student in a different state that has no income tax.

........and you work in that College state (that does not have an income tax)

.........then yes, you are required to file an income tax in your parent's state, if your total income for the year (from all sources) meets the minimum filing requirement for your home state.

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Example:   You are in college in TN.  You are still under age 24 by the end of the year.  Your parents live in GA, which is your home state.  You work part time in TN during the year, or during the summer, while still going to college full time when it's in session.   You would need to file a GA resident income tax return for ALL your income for the year, from any source.

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Now, if the college state you are attending has an income tax....then you'd also have to file a non-resident tax return in that College state, but they can tax you only on the income earned in that state........then you would also have to file a tax return in your home state, again on ALL your income, but your home state would allow a credit for the tax assessed by the non-resident state.   (With a bunch of mathematical handwaving math if the tax rates aren't the same.  Also this may not apply if the two states in question have a reciprocal tax agreement )