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Non-resident tax for student

Forum|Forum|3 years ago
July 26, 2022
2 replies
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My daughter claims residency in Hawaii but is living in California as a full-time student. She is employed while her stay in California. Which state does she file under? California or Hawaii?

Best answer by DoninGA

She will file a non-resident California state tax return and a resident Hawaii state tax return. She should complete the CA non-resident state return first so any state income taxes paid to CA can be a credited on her HI state tax return.

DoninGAAnswer

Employee

She will file a non-resident California state tax return and a resident Hawaii state tax return. She should complete the CA non-resident state return first so any state income taxes paid to CA can be a credited on her HI state tax return.

J

jmikimacAuthor

Does my daughter have to submit a Hawaii state tax even if she didn't earn any income in Hawaii?

N

NCPERSON1

@jmikimac - you have to submit a tax return to a) the state where you worked and b) the state where you reside.

The state where you reside will give you a credit for the tax paid to the state where you worked so that you are not taxed twice on the same dollar of income

Hal_Al

Employee

Out of state students are still considered residents of the state, where their parents live, if they are dependents.

Even if not a dependent, out of state students are still considered residents of the state, they resided in before starting school, unless they make concrete moves to establish residency in the new state, including the intent not to return to the original state.

So, I agree with the other answer, she files a resident HI return and a non resident CA return. HI gives her a credit, or partial credit, for the tax paid to CA.