The Tax Questions Blog

Question: Student Tax question?

I will be working in Oregon this summer, but moving to Utah and working part time while going to school. Will I have to pay state income tax in both states or only in the one that I am a resident?

Also, if I have scholarships that are taxable (used for room and board) will social security be taken out of that money because I have to declare it as part of my gross income, or is social security/medicare tax only levied on wages?

Answer: Scholarships do not have social security (FICA and MINS) taxes taken out of them and are only rarely taxable, so I would double check the type of scholarships before declaring them as part of your gross income subject to federal income tax.

You will have to file as a non-resident in the state of Utah and the wages you earn there will be subject to their state income tax. The wages you earn in Utah will not be subject to taxation in Oregon, so you will be taxed by the state where you earned them.

Hope this helps.

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