<p>This is not really Financial Aid, but it is financial!</p>
<p>D will have earned less money than is required to file tax returns this year. However, I know she will want to file so that she can get her $ that was withheld back. She earned around $1800 in her home state over the summer, and will have earned around $1000 (probably less) in her school's state. This last is through the Federal Work Study program. Does she file fed's return, home state's return, and school state's return? I know this is really early to be thinking about this, but it occurred to me and I don't want to forget that I have this question. </p>
<p>Well...for work study, she should have had no deductions taken out of her pay (federal income tax)...at least my kid didn't!! </p>
<p>You need to check the guidelines for each state. Some require that tax forms be filed regardless if the income is above a certain amount. DS was in that boat. He had to file our home state return (he earned summer money here) and a return for his college state as a non-resident (because he earned more than a specified amount there...and his was not work study so he wanted his money back).</p>
<p>Just FYI...we did the same for DH who worked in two states...one state return as a resident and one as a non-resident. To be honest, it was easy to do using one of the computerized tax prep software programs.</p>
<p>If what she earned is under the amount required to file, then the only reason to file is to get back what was withheld. Look at her paycheck. If they withhold State income tax, then she will have to file to get it back. I would guess that the $1,000 from the school's state would be under the amount required to file. The $1,800 may go either way, depending on the state. I know our state has a $1,500 requirement for a dependent.</p>
<p>You would file the federal return, the home state return (as a resident) and the school's state return (as a non-resident) if you are below the thresholds and want to get back income tax withholding. Next time, consider filing the W-4 and equivalent state forms if necessary to claim 'exempt' from withholding if this fits the circumstances.</p>