My Son had a paid Internship in Chicago. We live in New Jersey. How is this taxed, does he have to file a State Income Tax form for both Illinois and New Jersey?
Well…when my kids had a job in another state…they filed their IRS tax return as residents of our home state, and then state tax return here as a resident. Then they had to file in the other state as non-residents.
But you need to check the filing rules for taxes in each state.
My D also did what thumper1 did.
Ditto. Kid filed as a non-resident in MA (no state tax here - yay). But she was truly a non-resident: no MA DL, no voting registerarion, no apartment rentals… fully domiciled at home.
We helped our D do that for the past couple years, it’s a PITA. She has to file a state tax return for our state, but her W2’s show no local income so she doesn’t pay anything. Then she files a return for the state where she earned the income, and that state gets a cut depending on if she’s over the threshold.
Turbo Tax was able to handle it ok, although with a lot of confusion and head-scratching on our part.
PITA indeed. And it cost us extra $30 or so in Turbotax to file that stupid MA return…
We had a kid who was a resident of our home…but earned income in FOUR other states one year…and none in this state. Now…that was a PITA. Luckily a couple did not require a state tax return because the amount earned was under some threshold.
BUT he had to check them all!
@BunsenBurner Same here. Had to pay for the extra state return.
Yes, you have to check them all. My D worked out of state one summer. The state she worked in did not require a return but our state required her to report and oayvtaxes on that income (if she’d had to pay taxes in the other state she’d have got a credit for it in our state)
Did he have any NJ income? If not he won’t need to file in NJ but will need to fill out a nonresident return for IL
Most likely you will have to file nonresident return for NJ to get back state taxes he paid and pay all state taxes in IL since he is a resident of IL. I have the same problem with my DD who has many out of state internships and always forgets to give her home address as place of residence so they will be deducting her home state taxes.