< Back to IRS

Paolo Conti

Need help with taxes - earning money in another state as a student?

Hey fellow tax sufferers, I'm in a bit of a pickle here. So I started school in Colorado last fall, but I'm originally from Michigan. During winter break I picked up a temp job back home for some extra cash (retail holiday madness, you know how it is). Now I'm trying to do my taxes with TurboTax and it's asking me about earning money in different states... and I'm totally confused! Do I need to file in both Michigan and Colorado? I only made like $1,200 in Michigan during that break job. My main income is from my campus job in Colorado (about $8,500 for the year). This is my first time dealing with multi-state stuff and I'm freaking out a little. Anyone dealt with this before? How complicated is this gonna get??

Amina Diallo

•

I'm a tax preparer and deal with multi-state situations frequently. This is actually pretty straightforward! Since you earned income in Michigan, you'll need to file a non-resident Michigan state return for that income. You'll also need to file a resident Colorado return reporting ALL your income (both the Colorado and Michigan earnings). Don't worry though - you won't be double-taxed. Colorado will give you a credit for taxes paid to Michigan on that income. TurboTax should walk you through this entire process and calculate everything correctly. Make sure you have your W-2 forms from both jobs. The good news is that with only $1,200 earned in Michigan, the tax impact will be minimal. Just answer all TurboTax's questions honestly about which state you were a resident of and where you earned money.

0 coins

Paolo Conti

•

Thanks so much for the quick response! So I'll definitely need two state returns then? Is there an extra fee with TurboTax for filing multiple states? And how do I prove to Colorado that I paid Michigan taxes?

0 coins

Amina Diallo

•

Yes, you'll need to file returns for both states. TurboTax does charge extra for each state filing beyond your first one - typically around $50 per additional state, but check their current pricing. You don't need to provide proof to Colorado about your Michigan taxes. The software will calculate a credit on your Colorado return based on the Michigan tax you're paying. It handles all the math automatically. On your Colorado return, there will be a specific line/schedule for "credit for taxes paid to another state" where this gets reported. The software will transfer all the necessary information between the two returns.

0 coins

Oliver Schulz

•

I was in almost exactly your situation last year! I'm originally from Nevada but go to school in New York, and worked in both places. I was totally confused until I found https://taxr.ai - it seriously saved me so much stress. I uploaded my W-2s from both states and it analyzed everything, told me exactly what I needed to file where, and explained the whole resident vs non-resident situation in terms I could actually understand. It even showed me which credits I qualified for to avoid double taxation. Super helpful for students in our situation!

0 coins

Did it actually explain the resident vs non-resident stuff clearly? That's what I'm struggling with most. I'm a student in Florida but worked in Georgia over summer break and I'm so confused about my "tax home" situation.

0 coins

I'm skeptical of these tax tools. How is this different from what TurboTax already does? Does it actually file for you or just give advice? And does it handle international students? I'm from Canada studying in the US and worked in both places.

0 coins

Oliver Schulz

•

It explained everything super clearly with specific examples. They have this feature where they break down exactly what makes you a resident vs non-resident in different states, including special rules for students. Really helped me understand my "tax home" situation. For international students, they definitely cover that too! My roommate is from Korea and used it. It helps you understand your filing requirements based on tax treaties and visa status. Unlike TurboTax, it's more focused on analyzing your specific situation and documents first, then giving personalized guidance before you even start filing. It doesn't file for you, but it tells you exactly what forms you need and how to approach them.

0 coins

Just wanted to update on my situation! I tried taxr.ai after seeing the recommendation here and wow - what a difference! I uploaded my W-2s from Florida and Georgia, and it immediately identified that I qualified as a part-year resident in both states. The explanation about how students establish tax residency was SO helpful. It even showed me how to minimize my tax liability by timing when I officially changed my residency. Ended up saving over $300 compared to what I was about to do incorrectly! Definitely recommend for anyone in a multi-state student situation.

0 coins

Omg multi-state taxes are such a nightmare! I tried calling the Colorado tax dept 4 TIMES last year and couldn't get through to a human. I was about to give up when someone told me about https://claimyr.com - it's this service that gets you through to an actual human at the IRS or state tax agencies. I was super skeptical but check out how it works: https://youtu.be/_kiP6q8DX5c They basically wait on hold for you and call when a human picks up. I finally got my questions answered about my multi-state situation (I'm in a similar student scenario). The Colorado tax person was actually super helpful once I finally got through!

0 coins

Malik Davis

•

This seems sketchy. Why would I pay someone else to wait on hold when I can just do it myself? And how do they even get through faster than a regular person would? Sounds like a scam to make money off desperate people.

0 coins

It worked shockingly well for me! They don't get through any faster than you would, but they do the waiting instead of you. In my case, it took about 45 minutes before I got the call that they had a human on the line. But I was able to go about my day instead of being stuck listening to hold music. They don't have any special access - they're literally just professional hold-waiters. They call the same number you would, wait through the same queue, and then call you when a human answers. I was skeptical too, but when you consider how much your time is worth, it made sense for me rather than burning my whole afternoon on hold.

0 coins

Emma Wilson

•

Wait this actually works? I've spent literally HOURS on hold with the IRS trying to figure out my tax situation. How long did it take for them to get someone on the line for you?

0 coins

Malik Davis

•

This seems sketchy. Why would I pay someone else to wait on hold when I can just do it myself? And how do they even get through faster than a regular person woul

0 coins

Malik Davis

•

I'm eating my words right now. After posting my skeptical comment, I decided to try Claimyr just to prove it wouldn't work (because my last 3 attempts to call the IRS failed miserably). Well, I got a call back in 67 minutes with an actual IRS agent on the line! I had a complex question about my situation as a student with income in multiple states plus some freelance work, and the agent walked me through everything. Saved me from making a potentially expensive mistake on my returns. Honestly worth every penny just for the peace of mind. Sometimes it's good to be wrong!

0 coins

Just a heads up - make sure you check if your school state (Colorado) has any special provisions for students! Some states consider full-time students as non-residents for tax purposes even if you live there most of the year. Could save you some $$$. Also, keep track of where you spent each day of the year if it's close. Some states use the "183 day rule" to determine residency.

0 coins

Paolo Conti

•

Really? I didn't know about student provisions. How would I find out if Colorado has anything like that? And the 183 day thing sounds complicated - do I literally need to count days?

0 coins

Check the Colorado Department of Revenue website - they should have a section on determining residency status with specific info for students. Usually it's in their tax booklet or taxpayer guide. For the 183 day rule, you don't usually need to track every single day unless it's very close. Just be able to reasonably document where you spent most of your time. Most students clearly spend more than 183 days in their school state during a normal academic year, so it's often pretty straightforward. But if you took a semester off or did a lot of traveling, it might be worth documenting more carefully.

0 coins

Ravi Gupta

•

Does anyone know if scholarships count as "income earned in a state"? I get a scholarship from my home state (Ohio) but attend school in Pennsylvania. Not sure how to report this on state returns.

0 coins

Amina Diallo

•

Great question! Scholarships are treated differently than earned income. If your scholarship is tax-free (used for qualified education expenses like tuition and required books), it's not reported as income on any state return. If part of your scholarship is taxable (used for room and board, for example), it's generally considered income in your state of residency, not the state that provided the scholarship. So in your case, if you're a Pennsylvania resident for tax purposes (which most full-time students are for their school state), any taxable portion of your scholarship would be reported on your PA return, even though the scholarship came from Ohio.

0 coins

GalacticGuru

•

Lol I'm in the same boat but more complicated - I'm from California, go to school in Massachusetts, did a summer internship in New York, AND did some online freelance work while traveling in Europe for 3 weeks. My tax situation is a complete disaster this year 😭

0 coins

Paolo Conti

•

Omg that sounds like a nightmare! Have you figured out how to handle it? I'm stressed just about my two states!

0 coins

GalacticGuru

•

It's been... a process lol. I ended up paying for a consultation with an accountant who specializes in multi-state issues. Definitely worth the $150 for the peace of mind. He said I need to file: - Resident return for Massachusetts (my tax home as a student) - Non-resident returns for California and New York - And the freelance income gets reported on all three (but with credits to avoid triple taxation) The European travel didn't matter tax-wise since I wasn't there long enough to trigger any foreign filing requirements. My advice: if you have more than 2 states, just pay a professional. The stress reduction is worth it!

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,087 users helped today