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I am a student of University of Michigan. In 2008 I had a very small income from my one semester stay at Univ of Michigan. In the summer and second semester of 2008, I had income from South Carolina from 6 month internship. My parents are residents of Massachusetts and I have a MA car license. However, in 2008, I stayed for less than 3 months in Massachusetts and had NO income in Massachusetts, so no MA W-2, and no MA tax deduction. All the rest of 2008 I was in SC and MI, and I W-2s from SC and MI.
Question is - For MA tax purposes, for 2008, am I a part time resident, Non-Resident of full time resident, even though I had no income in MA and my stay for least in MA ? Both MI and MA seem to want to tax all my SC income on which I am already paying SC state tax.
Forum members, Many thanks for whatever help/comments!
You are a resident of MA (where your driver's license is), and a part year resident of MI and SC. You will have to file a return for each. In your MA return, there should be a line item where you get a credit for taxes paid in each of those states. MA should not collect taxes on income you never earned in MA. Your MI return should have the same line item for the SC income. You should never have to pay double in either state. There are specific forms within the states you have to fill to be able to get the credit from that state. If you are doing your own taxes, look for those forms. If you're not sure where to look for them within your tax software, go to the individual state's Department of Revenue and search the form using "income earned in other states".
I think it all depends on whether you terminated your Mass residency in 2008 or not. If you were a resident in 2007 and then left after 3 months in 2008, then you are considered a part-year resident in 2008. However, if you've spent 3 months in the middle of 2008 on vacation after already establishing yourself in another state in 2007, then you are a non-resident. Either case, you cannot be double taxed and would have to be credited taxes you've paid in SC. Good luck.
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