Lived & worked in 2 different states, how do I file my taxes?

Question

Ok so here's the deal. From Jan-Aug 06, I lived and interned in Washington DC. The W2 only shows Federal tax withheld. From Sept-Dec 06, I was back at home in Massachusetts for college. I worked at school but I didn't have federal or state taxes withheld.

So knowing this:
1. Do I have to file for state taxes in both DC and MA even though nothing was withheld (only Federal was withheld in DC)?

2. What is this Hope/Lifetime learning credit deal? I've read some stuff on this but I'm still confused.

Sorry, I'm a bit clueless on this tax stuff so bear with me. I figured I'd try it on my own first.

Answer 1

Depending on how much income you made in DC, you may be required to file the form D-40 as a part-year resident (you lived there more than 183 days). Read the instructions very carefully.

http://otr.cfo.dc.gov/otr/frames.asp?doc=/otr/lib/otr/tax/forms/2006/2006_D-40.pdf

If you were a legal resident of MA and your gross income was more than $8,000 - whether received from sources inside or outside of MA - then you are required to file a MA tax return (Form 1). If your gross income was $8,000 or less, you do not need to file a MA tax return.

http://www.mass.gov/Ador/docs/dor/Forms/IncTax06/PDFS/1_instr.pdf

You may be eligible to receive an education credit. The Hope credit applies to a person in the first two years of college. The Lifetime Learning credit is for after. You may be able to get a tax credit for paying tuition and other related expenses to a post-secondary school. You can read more about that at www.irs.gov

http://www.irs.gov/taxtopics/tc605.html

Answer 2

You file a part-year return with DC listing the income you earned while living there and pay the tax due. Since you didn't have any withheld you'll likely have a balance due.

File a part-year return with MA for the income earned while you lived there. Again, since you didn't have any tax withheld, you'll probably have a balance due.

Sorry can't help with the Hope / LLC. Haven't done any and don't have time to look it up right now.

Answer 3

which state did you file taxes in last year? When you lived out of state did you ever change your address and establish resiendcy there? Ask a tax professional but if you are from mass and still have a mass license and your address has always been mass then file there.

Answer 4

Where ever you get your froms back is where you have to file!
But if you had your taxes withheld in your paycheck you can opt out of recieving your money but if you owe them money then Pay it or theywill find you and add more loot to your final cost!
Best wishes