Paying taxes on scholarships-does out of state student file in both home state and college state?

[annoyingdad]

<p>@Dragonflygarden, there’s a change this year for federal which the OP is aware of:</p>

<p>

Unearned Income
For Form 8615, “unearned income” includes all taxable
income other than earned income as defined later.
Unearned income includes taxable interest, ordinary
dividends, capital gains (including capital gain
distributions), rents, royalties, etc. It also includes taxable
social security benefits, pension and annuity income,
taxable scholarship and fellowship grants not reported on
Form W-2, unemployment compensation, alimony, and
income (other than earned income) received as the
beneficiary of a trust.

</p>

<p><a href=“http://www.irs.gov/pub/irs-pdf/i8615.pdf”>http://www.irs.gov/pub/irs-pdf/i8615.pdf&lt;/a&gt;&lt;/p&gt;

<p>Here’s a thread from last year about this, updated this year:</p>

<p><a href=“Scholarship as Investment Income? - #16 by 2collegekids - Financial Aid and Scholarships - College Confidential Forums”>http://talk.collegeconfidential.com/financial-aid-scholarships/1473041-scholarship-as-investment-income-p2.html&lt;/a&gt;&lt;/p&gt;

<p>For the purpose of the standard deduction and having to file, taxable scholarships/grants are still earned income, but are now subject to the kiddie tax. And it’s still reported on the W-2 wages line with SCH.</p>

<p>My state always considered taxable scholarships/grants as unearned income for the purpose of filing/standard deduction. States don’t always follow federal rules.</p>