I have the nurse corp scholarship. I live in Louisiana, but the W2 days Maryland. Why do I owe so much state taxes?

Forum|Forum|1 year ago
April 4, 2025
2 replies
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Nurse Corps scholarship does not withhold state and local taxes. I understand that. The W2 reflects tuition, stipend, and other related costs paid in my name. I have a 1098T to reduce the tuition payments paid directly to the school. However, Louisiana is collecting taxes on the total amount listed on the W2. I don't understand. I should not have to pay $2300 in state taxes.

TurboTax Online

KrisD15

If listed on Form W-2, it will be treated as taxable compensation.

If you are a Louisiana resident, you are tax on all your income, no matter where earned.

If the W-2 was earned in Maryland, you would also file a Maryland return, but if the W-2 was only issued by a Maryland payer, but earned in Louisiana, only file for Louisiana.

Scholarships used for education expenses are non-taxed but if paid for services and reported on a W-2, it is taxable compensation.

Please see the HRSA website for how the scholarship is considered taxable.

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Hal_Al

Employee

Statement (S). "However, Louisiana is collecting taxes on the total amount listed on the W2."

Comment (C). That is correct. The box 1 amount on the W-2 is totally taxable, by federal and state. There are no deductions allowed.

(S). "I should not have to pay $2300 in state taxes."

(C). That does seem high, depending on how much is in box 1 of the W-2. There's probably something else wrong.

(S). "I have a 1098T to reduce the tuition payments paid directly to the school."

(C). That doesn't make sense. You may be allowed to claim a federal tuition credit of up to $2500, depending on what's in boxes 1 and 5 on the 1098-T. But that won't help you on the state return.