Florida college student with job but still a resident of Wisconsin

[denise4gb]

My daughter is going to college in Florida. She is still a resident of Wisconsin and I have claimed her on my 2019 taxes as a dependent.  She just got her first job in Florida (February 2020).  Florida does not have state income tax, Wisconsin does.  How do I figure out how much should be withheld from her Florida paycheck to pay income taxes due for 2020 in Wisconsin?  I do not want her to owe a huge lump sum to Wisconsin when she files her 2020 tax return.

Also, will I be able to claim her as a dependent in 2020?  I am paying for her tuition/room & board.

Thanks.

[AmyC]

The job in FL will not withhold WI tax for her. She can make estimated payments to WI. If her liability is below $500, it is not required. Here are the directions: Estimated Tax Payments - Wisconsin Department of Revenue

For the first $11,760, the tax rate is 3.8% from there to  $23,520 the rate is 5.04% minus $138.77.

You can request tax assistance with WI 608-266-2486.

As for 2020, you will want to take the IRS short online quiz in 2021, when you know how much your daughter made and how the year actually went. Here is the link, Filing Status, Dependents and Exemptions 

[SteamTrain · Accepted solution]

Maybe nothing:   WI says:

" You must file a return for 2019 if:
• You could be claimed as a dependent on someone else’s return and either of the following applies:

(1) Your gross income was more than $1,100 and it included at least $351 of unearned income, or

(2) Your gross income (total unearned income and earned income) was more than –
$10,860 if single,
$14,030 if head of household,
$20,110 if married filing jointly, or
$9,550 if married filing separately.
Unearned income includes taxable interest, dividends, capital gain distributions, and taxable scholarship and fellowship grants that were not reported to you on a W‑2. Earned income includes wages, tips, self-employment income, and scholarship and fellowship grants that were reported to you on a W‑2."

_______________________

Of course, those are the 2019 limits for a dependent.

It is unlikely the FL employer can withhold WI taxes (unless they are part of some national company).  She could either put, say, 5% of her pay into a savings/checking account to pay any WI taxes that "might" end up being due when she files next year.

_______________________________________

As long as she is under age 24 at the end of 2020 AND still in college during at least 5 months of the year, and you supply more than half her support for the year, you would continue to claim her as a dependent . 

 Once she reaches age 24, then her exact income becomes critical in determining you ability to claim her 

___________________________________

Details on claiming her as a dependent are here  (being away at college still qualifies as living with you):

https://ttlc.intuit.com/community/credits-and-deductions/help/who-can-i-claim-as-my-dependent/01/267...