NR/PYR and Scholarship - double taxing?

Forum|Forum|5 years ago
April 17, 2021
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My daughter has a full scholarship and is going to a college in another state. She is also working there. There is a taxable portion of her scholarship because it covers room and board.

In filing the NR/PYR form with that state, it's detecting the taxable amount of that scholarship, but I don't believe I should have to pay tax on it to that non-resident state.

Can you tell me if I'm wrong, and if I'm not wrong, then how do I prevent from paying that state extra taxes when doing my taxes in TurboTax?

Best answer by Hal_Al

You are correct, the taxable scholarship should be allocated to her residence state. In both state interviews, you should be presented with income allocation (by type of income) screen(s).

If you daughter attends school in a reciprocal state, even her wages would not (usually) be subject to non resident state tax.

Hal_AlAnswer

Employee

You are correct, the taxable scholarship should be allocated to her residence state. In both state interviews, you should be presented with income allocation (by type of income) screen(s).

If you daughter attends school in a reciprocal state, even her wages would not (usually) be subject to non resident state tax.