Question

Grad school research assitant's w2

Forum|Forum|2 years ago
March 16, 2024
1 reply
0 views

Someone received a w-2 from a grad school as a research assistant.

The w-2 withheld fed and home state tax(a different state from school's state) but no social security tax withheld. What's the difference between this kind of w-2 and regular w-2?

Thank you.

O

Opus 17

Employee

Generally speaking, when a student is working for their school, they are exempt from social security and medicare withholding. The income is considered a student stipend rather than compensation for work performed.

Also generally speaking, you are required to file a state tax return in the state where your permanent residence is located, that reports and pays tax on all your world-wide income, even if you earn income while temporarily working in another state. Depending on the rules of the specific state, you may also be required to file a state tax return in the state where you are living temporarily, and pay income tax only on income earned in that state. Since your home state also taxes you on the same income, it will give you a credit to offset taxes paid to the state where your school is located.

Of course, if your income is less than the filing threshold, you may not be required to file at all. What state is your permanent residence located, where is your school, and what is your total income for the year?

M

magicstar41000-yAuthor

Opus 17,

Thank you very much for your explanation.

The school is in PA. Income withheld on the w2 is reported to MA. Total income level requires to file tax return, but don't need to file tax return for PA?

Thank you!

L

LeticiaF1

It depends, the way the school issued the W2 makes it Massachusetts income. According to the rules of the state of Pennsylvania, if you are a PA resident, nonresident or a part-year PA resident, you must file a 2023 PA tax return if you received total PA gross taxable income of $33 during 2023, even if no tax is due with your PA return. Filing a Pennsylvania return would depend on whether you are considered a PA resident, and if you had any other income.

If you would like more information, refer to the 2023 Pennsylvania Personal Income Tax Return Instructions.

@magicstar41000-y