We live in CO, our dependent daughter (20) attends an out of state school (CA) and worked part time, making less than is required to file state taxes. She also received a 1098-T from a CA school and a 1099-Q. (All of the 529 distributions were for qualified education expenses, so she does not owe tax on these.)
Which State taxes does she need to file? CO or CA?
Thanks in advance.
When your colleges student is your dependent, living away at school is considered to be a "temporary absence" from home, so your child is still a resident of your own home state--CO--and should file a CO tax return if she has taxable income. You do not mention how much she earned while at school in CA, so we cannot determine if she needs to file a return for CA, nor have you mentioned if any CA state tax was withheld from her paychecks. If she needs to file a CA return to seek a refund of tax withheld, it must be a NON-resident CA return. The non-resident return must be prepared before the resident state return.
When your colleges student is your dependent, living away at school is considered to be a "temporary absence" from home, so your child is still a resident of your own home state--CO--and should file a CO tax return if she has taxable income. You do not mention how much she earned while at school in CA, so we cannot determine if she needs to file a return for CA, nor have you mentioned if any CA state tax was withheld from her paychecks. If she needs to file a CA return to seek a refund of tax withheld, it must be a NON-resident CA return. The non-resident return must be prepared before the resident state return.