<p>Has the question been raised? We live in Ohio. Son goes to college in Pennsylvania. He moved off campus and got an apartment in PA in April 2013. He had a work-study job at the university and a paid internship. Now that it’s time to file taxes, does he file federal income taxes for Ohio or PA? Does he file state tax for Ohio or PA? Does he pay local income tax for our small Ohio town or the town he lives in in PA? </p>
<p>Any insight or information is greatly appreciated.</p>
<p>He files federal taxes from his state of residence, but it doesn’t matter. He files state taxes in the state he earned the money in, and usually gets credit for those on his state taxes for the state of residence. </p>
<p>For example, if he earned $5k in PA, and $5k in Ohio, he’d file ‘part year’ or ‘out of state’ for PA, and Ohio would give him credit for having paid the $5k to PA and not tax him on that. If he didn’t earn anything in OH and has no need to file at all in Ohio, then just file in PA.</p>
<p>Federal taxes doesn’t matter as they tax the money regardless of where it is earn, and interest regardless of where the bank account is.</p>
<p>Local tax is usually for money made IN that city. The NFL players will be taxed for the superbowl earnings for this game only by the city. Philly does that too, so whenever a pro works in Philly, he gets taxed on that percentage of earning, and the Philly players don’t have to pay taxes on out of town games unless the city they play in taxes them.</p>
<p>Most likely he will need to file in two states. My daughter earned income in MA last year and also has unearned income in our home state (interest on bank accounts) and so she will need to file with both states. Remember if he is still a dependent on your taxes then he does not get to deduct himself on his taxes.</p>
<p>It will depend on the rules of each State. When my daughter worked in a different State in the summer after her Freshman year that State did not require her to file a non resident return as her income was below a certain amount. Our home State did require her to file and to declare the income from the other State. Some States will expect a return if any income comes from that State (in fact I believe my home State requires non residents to file).</p>
<p>Check the tax rules for both States. </p>
<p>Yes, check the tax rules for both states. Also, if both require doing income tax calculations, check carefully for rules that can allow you to avoid double state taxation on the same income.</p>
<p>Dealing with the same issue here, except she earned money in both states. MI makes her pay taxes on income she earned from the other state. The amount she made in NY is too little to have to pay taxes on it so she’s only paying to one state. Next year, I think she’ll have to pay both states. Not to mention NYC taxes. It’s a nightmare. </p>
<p>One year, D went to school in PA, worked in Ohio and was a resident of Michigan (where we her parents live). She had no income in MI but did in the other 2 states. I could not figured it out on my own but downloaded turbotax for all of those states. It costs money to download each state but turbotax does figure it out smoothly. It was worth the money to me. </p>
<p>I went on the website of the states where D had worked (in my D’s case it was OH) and looked at the “who should file” info. She did file in OH, but only to get a refund of the state tax deducted from her paycheck Our state (CA) taxes residents on income earned in any state; Too bad for us, since CA tax rates are higher than OH’s.</p>