no taxes owed and no return due - must i still file?

What is the name of your state? MA and NY

I lived in MA for seven years (all the requirements of residency fulfilled). In August 2002, I left for gradschool in NY, but kept the apartment I had in MA, kept my car and significant other there, bills, banking, etc. etc. I receive a taxable stipend as a grad student, and was still pulling a salary from my last job in MA even after I started school. For the 2002 year, it was difficult to determine which state to file taxes in, so finally with an accountant, I decided that I owed NY state taxes on the money I had been earning here, so I filed in NY as a non-resident for that period. I also filed in MA as a regular full-time resident, but received a credit for the taxes I had paid to NY and New York City.

In September of 2003, I ended my MA apartment lease, sold my car, brought the significant other here, basically severed all ties to MA. For the entire year of 2003, I was a student, earning all money here in NY. So, according to my strategy for last year, I owe NY and NYC taxes on the whole year's earnings, and taxes to MA for the time up to September. So I would file as a regular NYS resident, and a part-year MA resident. However, as far as I can tell, it ends up that I owe nothing to MA, because the amount of tax due to them is less than the amount due to New York -- it cancels out the tax due to MA. And MA did not tax my stipend during the year, so I am definitely not due a return. Do I still need to file a return?

[abezon]

Yes. The fact that your taxes are covered by your NY tax credit does not relieve you of the burden of filing a MA return. If you have sufficient gross income to be required to file in MA, you have to file.