<p>My DD has to file taxes in resident state of NY and college state of MA. I keep reading that the student can not claim an exemption in federal return if parent can claim them, but how about state returns? I read in the NY form about the student claiming the exemption for college credit purpose and I am confused why the form and instructions would mention that? Parents don't have to claim same dependent in federal and state? Can I claim her in the federal return for AO credit and let her claim the exemption in her NY return? I only will get 1000 exemption money anyway. It seems that the only credit she can get is the standard deduction and maybe the resident tax credit. The tax she has to pay seems so high! If they get college based grant and a federal grant can the latter be excluded from income in the college state since it was not awarded by the institution? I feel so bad that her taxes are so high in NY!</p>
<p>My d is also an out-of-state student in MA and she has a part-time job. When I looked at their state regulations it did not appear she was required to file in Massachusetts.</p>
<p>I looked up Frequently Asked Questions for Non-Residents and Part-Year Residents. </p>
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<p>I know this is not answering your question but maybe it will help with the MA part, if she’s in a similar situation as my D.</p>
<p>I don’t know anything about MA and NY State taxes. I do know that in our state the exemptions on the state return have to tie in with the exemptions from the federal tax returns, and the AGI is also based on the federal tax returns. I would not think she can claim her personal exemption on state returns and claim to be your dependent for federal returns. I also don’t think she can claim different incomes in different state and different to federal income claimed. However states often have some sort of offsetting tax credits for income earned in other states, or credits for tax paid in other states. Some states do not require non residents to file state taxes, others do. It will vary by state.</p>
<p>Have you tried running her data through one of the freefile programs associated with the irs website, such as tax slayer? Some of them will let you do state taxes as well.</p>
<p>thank you swimcats and college query. NYS has their own AGI based on their added items and subtracting items. They also state that if no one claims the student in a NYS tax return, the student can claim the college tuition credit. Nothing about it been tied to federal dependent claim. I think I will file as usual and pay the high tax and try to get the answer later and if needed file an amended return. I never noticed that part on student claiming college credit before in the NYS forms. As for MA, because of a high college grant and WS she has had to file the MA return every year to recover tax withheld. I hate this time of year, my head hurts.</p>