Georgia State Taxes

[hposen]

Hi,

I am doing my son's taxes and I have a question about Georgia State tax. He is a student at Georgia Institute of Technology and his residence address is NJ (my home). He worked in Ohio for 6 months as a self-employed contractor and was paid from the school via a W-2. When I am using TurboTax he has 3 state forms (NJ, Ohio and Georgia). The Georgia State form is taxing him on the money he earned in Ohio. He is not a resident of Georgia is this correct or is there a way to exclude that income? I am using TurboTax Premier.

Thank you.

[ColeenD3]

No. Even as a nonresident, he is required to file a return if he meets the requirements.

Non-Residents

Non-residents who work in Georgia or receive income from Georgia sources and are required to file a Federal income tax return are required to file a Georgia Form 500 Individual Income Tax Return.

Some examples of Georgia source income are:

• Wages
• Georgia Lottery Winnings
• Income from flow through entities (S-Corporations, Partnerships, LLCs, Trust, and estates
• Rents

If you are a legal resident of another state, you are not required to file a Georgia income tax return if:

• Your only activity for financial gain or profit in Georgia consists of performing services in Georgia for an employer as an employee
• The compensation for services performed does not exceed the lesser of five percent of the wages in all places or $5,000.00.

[TomD8 · Accepted solution]

Since he is not a resident of GA for tax purposes, his earnings from work carried out in Ohio are not taxable by GA, but they are taxable by both OH and his resident state of NJ.

Work physically carried out in OH is not GA-source income.  It is OH-source income.

In the My Info section of TT, be sure to designate NJ as his State of Residence and to indicate that he had Other State Income from OH.  He is not required to file a GA tax return unless he had earnings from work carried out in GA.  (If he did have income from GA, in TT indicate that he had Other State Income from GA as well as from OH.)

In TurboTax, be sure to complete his non-resident state return(s) before you complete his home state NJ return.  If he still qualifies to be claimed as your dependent, be sure to indicate that on his return.