Hello,

Thank you everyone for all the help. I have asked this question earlier, but still couldn't understand this TAX logic.

I am a student from India on F1 in MS since 2004. My wife is on dependent F2 visa, we got married in 2008. From Jan-May 2008, I worked part time on campus in University in MS. From May15-Dec15 2008, I worked as an intern in Washington State (where there are no state taxes). I returned back to univ in Dec last week.

Now, I understand that when I file federal, I have to sum up the total income and then claim dependent and personal deductions. For MS state returns, do I need to sum up the total income and calculate the state tax or should I consider only the income earned in MS. Since I stayed more than 183 days in WA, am I now a resident of both WA and MS? My wife came to WA directly in May, and came to MS in Dec. Is she resident of WA or MS?

Also, when I file MS state tax return, do I need to file as resident or non-resident? I am a bit confused as to how much I can claim for exemption for dependent? Considering my 7 months internship in WA and presence in MS since July 2004.

Thanks a lot

You will file federal return as non-resident.

Where did you work and live in 2007 and 2008 (with dates)?

Hi,

Thank you for the reply. I was in MS from Jan- May 15 2008, and then in WA as intern from May 19-Dec 15 2008. In 2007, I was entirely in MS. How should I file my state tax?

Thank you

Hi Mukat,

Can you please advise me what to do.

Thanks

1. You must file WA tax return as part year resident and report income earned while in WA.

2. For MS return, there can be two answers:
(a) File MS return as part year resident and report income earned in MS.
(b) File MS return as resident and report your total income for the year. Then claim credit for taxes paid to WA.
Which one is correct? May be some one else can answer this. I feel it is safer to go for (b).

Hi Mukat,

Thank you very much. Incidentally, WA has not state tax. So, that leaves me with only MS state tax. I have read about definition of "part-year "resident but am confused as to if I qualify or not. If I choose option 2(a), I would have to pay no tax to MS and in return would get back if any. If I choose 2(b), I would have to pay for the whole year (and for the income not earned in MS).

Thanks

Yes, you are correct. Check at MS web site the residency requirement.
Can MS claim you as resident?

Normally, if a state can conclude that your stay away from MS was temporary or transitory, the state will like to tax your worldwide income for the year. Read my blog: http://taxipay.blogspot.com/2008/06/working-in-two-or-more-states.html

If you filed as a resident of Mississippi and claim the Washington income on your Mississippi return, then you filed incorrectly.

Reason? By law, students whose original home is outside of the state are considered "non-resident" to the state where they attend school.

This is generally recognized in every state in the United States.

You should amend the Mississippi return to reduce your taxable income to just that income earned WITHIN the Mississippi state borders.