State Tax on Internship

anomander
Sat, 02 Feb 2019 14:51:06 +0000

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.