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April 11, 2024
Question

Does anyone know California rules for student going to college with scholarships and grants in a different state. Student owes Calif. gets IRS refund

  • April 11, 2024
  • 1 reply
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All scholarships and grants were issued from state where student is attending college. Student is considered  a resident of CA.

1 reply

Hal_Al
Employee
April 11, 2024

If a portion of a scholarship is taxable, on the federal return, it also taxable by the student's state of residence. It is not taxed by the state where the school is located.

 

On the other hand, if the student had a job at the school, those wages would be taxed by both states. The resident state would grant a credit for the tax paid to the work state.