My son goes to school in NJ but lives in HI. He worked in both states. Does he have to pay taxes on his excess scholarship amount in HI & NJ?

It seems like he is being taxed twice on the adjusted income.

posted

He won't be taxed twice. He'll be able to take a credit on his HI return for the taxes he pays to NJ. Just be sure in TurboTax that you complete his non-resident state return first, before you do his home state return. The sequence is important so that the credit flows properly.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.