Does the state listed in a 1099-int matter for reporting the income in that state if I am not filing there?

[asaleno]

I am a resident of MA, but going to school in CT so I had updated my accounts to my temporary school address to get mail there. I received a 1099-int showing my address in CT, but no state tax was withheld. I did not earn any income in CT so I would not file a return there, but I am worried if they may see the 1099-int showing a CT address and expect me to file and report that interest income there. Is that the case? Or can I just ignore the "CT address" of the form and report it under my MA state as if the 1099 had listed a MA address? Thanks!

[DanielV01 · Accepted solution]

Ignore it.  You don't need to file a CT return unless you have CT nonresident income you earned while in school there.  If CT asks questions, you will provide documentation to show that your CT "residence" was a temporary school residence and that you are a Massachusetts resident by domicile.  

All of your income is reported on your Massachusetts return regardless of where it may have come from because your resident state is allowed to tax all of your income.

[asaleno]

Thank you! Just to clarify based on what you said, how the situation change if in the future I earn some CT income? Say I do receive some other CT income while in school and I would then be also filing a CT non-resident return and a MA resident return. If I get a 1099-int form that lists a CT address, but no state tax is withheld, does that still apply that I can just ignore the "CT address" of the 1099-int form and report that income under my MA state as if the 1099 had listed a MA address?

[DanielV01]

Interest is income that is only taxed in your resident state.  Since in the future you would file a nonresident CT return, you would not include the interest income on your CT return.  Income that is taxed in CT is also taxed in MA, but you will be able to claim a credit for the tax you pay to CT on any CT income.

[asaleno]

That makes sense that the interest is reported just to MA and not CT (regardless of the address on the 1099-int), but the other CT income gets taxed and reported in a CT nonresident return and I can get a credit for that tax towards my MA return. Thanks so much!!

[DanielV01]

You are welcome.  Best of success to you.