As a college student, what state should I file taxes in? Multiple income sources confusing me

You'll likely need to file tax returns in both states since you have income from both. This isn't uncommon for college students. For your college state, since you've established legal residency there (voter registration and driver's license), you'll likely file as a resident. You'll report all of your income on this return, including what you earned in your home state. For your home state, you'll likely file as a non-resident or part-year resident (depending on their specific rules). On this return, you'll only report income earned in that state. Most states have credits for taxes paid to other states to avoid double taxation on the same income. Tax preparation software can handle this situation pretty easily - just make sure you select the option to file multiple state returns. The fact that your parents claim you as a dependent doesn't affect which states you file in, though it does affect certain deductions and credits you might be eligible for.

I was in the exact same situation last year and found this awesome tool called taxr.ai (https://taxr.ai) that literally saved me hours of confusion. I had income from my internship in New York and my campus job in Massachusetts, and was totally confused about state residency requirements. What I really liked about taxr.ai was how it analyzed my specific situation - I uploaded my W-2s from both states and it automatically figured out I needed to file as a resident in Massachusetts (where my school is) and a non-resident in New York. It walks you through all the residency tests for each state and explains why you qualify as resident/non-resident. Way easier than trying to interpret vague tax websites!

Just wanted to follow up - I tried taxr.ai after seeing this recommendation and it was super helpful! My situation was complex with California residency for school but Arizona income over the summer. The tool confirmed I needed to file as a resident in California and non-resident in Arizona, and explained exactly why. It even showed me how to claim a credit on my California return for taxes paid to Arizona so I wouldn't be double-taxed on the same income. Much clearer than the conflicting advice I was getting online! Definitely recommend it for other college students with multi-state situations.

If you're having trouble getting definitive answers about your tax residency situation, you might want to try Claimyr (https://claimyr.com). I was in a similar situation last year and couldn't get clear guidance from state tax department websites. I tried calling both state tax departments directly but kept getting stuck in these endless phone queues. With Claimyr, they actually got me connected to a real person at my state tax office in under 10 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The tax agent I spoke with confirmed that because I had a driver's license and voter registration in my college state, I needed to file as a resident there and a non-resident in my home state. Getting that official confirmation directly from the tax authority gave me peace of mind that I was doing it right.

I need to eat my words. After seeing the comments here I decided to try Claimyr when I was struggling with a similar residency question between my college state (Virginia) and home state (Maryland). I was legitimately shocked when my phone rang and a real IRS agent was on the line - I didn't have to deal with a single automated menu or wait on hold at all. The agent confirmed I needed to file as a part-year resident in both states since I maintained significant ties to both. This was completely different from what I thought based on various tax websites, and saved me from potentially filing incorrectly. Sometimes getting an official answer directly from the tax authority is the only way to be 100% sure, especially with complicated residency situations.

Don't forget to check if your college state has special rules for students! I go to school in Massachusetts, and they have specific guidelines saying full-time students from other states are considered non-residents for tax purposes even if they live there most of the year. Meanwhile, New York considers you a resident if you maintain a permanent place of abode and spend 183+ days there. Every state has different requirements, which is why this gets so confusing. Also, just because you need to file in both states doesn't mean you'll owe taxes in both. Most states have credits for taxes paid to other states to prevent double taxation.

Something nobody's mentioned yet - check if either state has reciprocity agreements! Some neighboring states have agreements where residents of one state who work in the other only have to file and pay taxes in their home state. For example, I live in Maryland but work in DC, and because of the reciprocity agreement, I only have to file a Maryland return. Saves a ton of hassle.

The reciprocity agreement point is crucial! Since you mentioned you're in Illinois for college and have income from both states, you should definitely check if there's a reciprocity agreement between Illinois and your home state. Also, one thing that might help clarify your situation: the fact that you're registered to vote and have a driver's license in Illinois are strong indicators that Illinois is your tax domicile, regardless of where your parents claim you or where your mail goes. Most states consider these the primary factors for establishing residency. If there's no reciprocity agreement, you'll likely file as an Illinois resident (reporting all income) and as a non-resident in your home state (reporting only income earned there). The Illinois return should give you a credit for taxes paid to your home state to avoid double taxation. One last tip - if you're using tax software, most programs like TurboTax or TaxAct have specific workflows for multi-state situations that walk you through exactly this scenario. They'll ask about your residency indicators and income sources and determine your filing requirements automatically.

The reciprocity agreement information is really valuable! Since you mentioned Illinois specifically, I can help clarify: Illinois has reciprocity agreements with Iowa, Kentucky, Michigan, and Wisconsin. This means if you're an Illinois resident who worked in any of these states (or vice versa), you typically only file in your state of residence. However, since you've established legal residency in Illinois through voter registration and driver's license, you'd file there as a resident regardless. The reciprocity would help if you had summer income from Wisconsin, Iowa, Kentucky, or Michigan - you'd only need to file the Illinois return. For tax software, I'd definitely recommend going that route for multi-state situations. TurboTax, FreeTaxUSA, and H&R Block all handle this really well. They'll ask you questions like "Did you live in more than one state?" and "Did you earn income in multiple states?" then guide you through each state's requirements. Much less overwhelming than trying to figure it out manually! One thing to keep in mind - even if you end up needing to file in both states, you're not necessarily paying double tax on the same income. The resident state (Illinois in your case) will give you a credit for taxes paid to the non-resident state, so you're only paying the higher of the two tax rates.