Catch for us the little taxes

March 28, 2015 7:15 AM

How do I do taxes for the first time? I live in NJ, and I had a paid internship last summer in CA. The internship provided free housing (is that taxable?) and I'm a college student in NJ. Sub-questions: What forms do I fill out, and what software can I use?

How does this relate to my parents' taxes? What percent of my earnings should I expect to be paying, both now and in the future?

posted by glass origami robot to Work & Money (6 answers total)

Ok, you have to file a federal return and two state returns. You can use any software you like; I prefer TaxAct. You may be eligible for freefile options. Your states may have similar free file options, or you may have to pay to file the state returns.

Fill out your federal return. You are likely still able to be claimed as a dependent on your parents taxes, so check that box if that's the case. The software will walk you through it.

Then file a nonresident California return reporting the information on the W-2 you received from your internship. If the housing is considered taxable income, it should be included in the wages on the W-2.

Then file a NJ resident return reporting the same income, but taking a credit for the California taxes paid.

You will not get a refund of any medicare/ss taxes withheld; only the income taxes (assuming you paid in more than you owe).

If your internship treated you as an independent contractor and gave you a 1099-MISC instead of a W-2, then this gets more complex.

If your parents can claim you as a dependent, they get to claim any benefit from your school tuition (reported on Form 1098-T) that may arise.
posted by melissasaurus at 7:38 AM on March 28, 2015

The only issue regarding your parents' taxes is whether or not they still claim you as a dependent. Ask them, and if they did, follow the steps in the instructions for "If someone else can claim you as a dependent..."
posted by hwyengr at 7:40 AM on March 28, 2015

Actually, is it possible that you made less than the federal and respective state standard deductions? Wouldn't surprise me in your situation.. If so, you may not need to file taxes at all (big caveat to that is that you are claimed as a dependent). However I suggest going through the motions anyway as it's good to learn about this stuff early. Use any of a number of programs that will walk you through the process and file federal and as an NJ resident and CA non-resident as previously suggested. For a summer internship, odds are you won't be paying much anything, and as I said, you technically may not even need to file.
posted by drpynchon at 9:03 AM on March 28, 2015

For more info on whether filing is even necessary see: here for NJ; here for CA; here for federal. Make sure if they ask, that you note you are claimed as a dependent.
posted by drpynchon at 9:17 AM on March 28, 2015

Note: you may not need to file, but you may want to file if you are due a refund.
posted by islandeady at 12:44 PM on March 28, 2015

I'm pretty sure I made enough to need to file, since most other interns have filed.
posted by glass origami robot at 3:09 PM on March 28, 2015