<p>Well, my residency is in state A and I receive a lot of state and federal grants. My parents are separated. My dad wants me to work in state B because they pay more than state A. If I work out of state how will that affect my aid? I know for my financial situation I can’t make over $6,000 without it affecting my overall financial aid package for the following year but that’s about all I know. Thanks in advance!</p>
<p>What state you work in over summer doesn’t matter.</p>
<p>Will you be living with your other parent than you use for FAFSA?</p>
<p>If you live in state A, and commute to a job in state B, chances are that your employer will automatically withhold the state income taxes for A from your check anyway.</p>
<p>If you are living and working in B for the summer, but living in A the rest of the time, you need to be aware that you will probably have to file state tax returns for both B (as a part-year resident or non-resident depending on the rules in B) and for A (as a part-year resident or full-time resident depending on the rules for A). Run this by your dad too. </p>
<p>Not to mention of course that if you are living and working in B for the summer, you might have greater living expenses than if you were to remain in A. Put all of that into your evaluation of B as an option. If the increased income will be eaten up by increased living expenses, and the job is not something that applies to your career goals, staying in A might make the most sense.</p>
<p>Barring a reciprocity agreement between A and B, if you work in B and B has state income tax, you have state income tax withheld for B, and you file a B tax return. That’s the case regardless of where you live.</p>
<p>Thanks allyphoe! I didn’t know that. When I used to be a cross-border worker (job in DC, home in MD) the MD taxes were withheld, not the DC taxes. But then again that was in the last century, so who knows what is up these days.</p>
<p>MD and DC have a reciprocity agreement. :-)</p>
<p>DC doesn’t tax non-residents at all – we learned this after my DS worked there one summer, had taxes withheld, and qualified to have them all refunded. We live in a state that does not border DC, and he was living there for the summer, but in obviously temporary housing. I assume DC has that rule because so many people who work there live in MD or VA. But that’s unusual. Usually what happens is you pay taxes to the state you worked in, and then you get a credit for the lesser of what you paid to state B, or what you would have paid to your home state A on the same income, on your state taxes for state A.</p>
<p>Yes I will be and that’s the part I’m worried about. When I apply for the job, I’ll end up putting an address within that state as my current address.</p>
<p>Yes you will what, kcjch? Live with your other parent while working in state B? Will that shift the balance of which parent you lived with more during the year?</p>
<p>Many times college students work in some “different” state for the summers. Think of the kids with internships or summer work related to their field of study. Or kids who remain at an OOS college campus for the summer to work. </p>
<p>Your permanent address is what you need to use for this job. Both of my kids worked out of state…but the reality is they needed their W2 forms mailed HERE so their taxes could be completed.</p>
<p>Both filed their IRS taxes using our home address and state. </p>
<p>For state tax purposes, they filed in our home state as their state of residence. They filed in the other state(s) as non- residents. One year, my son worked in THREE other states besides where we lived and didn’t work at ALL here. His jobs were related to summer programs out of state., and in. His college town, also out of state.</p>
<p>Yes, I will live with my other parent while working in state B. It will not shift the balance since I’ll only be staying there at most 3 months.</p>
<p>Do you live with your custodial parent when you’re attending school, or do you live away at school?</p>
<p>I live on-campus but I live/stay with her whenever there’s a break.</p>
<p>I think you might have to file FAFSA with parent B’s info in that case – I’m not 100% sure and hopefully someone else on this forum will chime in, but I think who you spend the most time living with excludes the time spent on campus, so since the summer months would add up to more time than your breaks the rest of the year, almost certainly, you’d end up spending more time with the parent in state B, and have to file your FAFSA accordingly.</p>