Solved

Delaware Resident working in PA, Box 16 amount is different on each state W2.

Forum|Forum|4 years ago
April 7, 2022
1 reply
0 views

I am doing my taxes and while my DE-W2 and PA-W2 shows tax whit-held the state wages amount (box 16) is different between PA and DE, why is turbotax asking me to verify if the amount in DE is taxable in PA. I assume the answer is "no" because the two W2 are based on the same income.

Best answer by DMarkM1

In the PA state interview when presented with page concerning the non-resident allocation of wages and shows a line for DE and a line for PA, "Edit" the DE line. DO NOT indicate that it is PA taxable. The separate PA line takes care of that PA box 16 income from your W2.

Additionally, in the DE interview, the credits section, the computed taxes paid to PA are automatically included in the credit for taxes paid to another state.

To verify that the income is only showing once for each state you should view the tax summaries.

"Tax Tools" in the left hand menu
"Tools"
"View Tax Summary" in the main screen
"XX State Tax Summary" in the left hand menu

DMarkM1

First, if you haven't already, you should enter as one W2 with a line for each state for boxes 15-17. You are correct the box 16 amounts for each state will be different as PA taxes the box 12 retirement contributions and DE does not.

After verifying these entries you would answer "Yes" the DE wage income is taxable by PA. There is double taxation and you will claim a credit on your DE resident return for taxes paid to another state (PA) on the same income. You will do this in the credits section of your DE state interview.

I recommend you complete the PA non-resident return first and take note of the tax paid to PA on the wage income. You will use that number to claim the credit on your DE return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

F

frosty08Author

@DMark1 Thanks for your reply, I do get and I understand what you explained, but I am still a bit confused. Let me add some more context to the original question.

I am a DE resident and I entered/imported my only W2 info in the Federal tax section.

Additional inför for reference:

PA Box 16 amount of X

PA Box 17 Amount of XT

DE Box 16 amount of Y

DE Box 17 amount of YT

When I proceed to do PA income section I believe it uses the all the info imported at the beginning.

TT asks me to verify the DE income and prompts me if the DE income with the amount of Y is taxable in PA.

Checking yes the PA Tax due changes from zero to owing $$OWN (% of Y), by checking the yes box, will this make my salary X+Y?

Assuming I checked yes in the PA taxes, when I do the DE taxes, do I have to manually add/enter the $$OWN on the DE credits? it automatically added the XT amount (from PA box 17)

DMarkM1Answer

In the PA state interview when presented with page concerning the non-resident allocation of wages and shows a line for DE and a line for PA, "Edit" the DE line. DO NOT indicate that it is PA taxable. The separate PA line takes care of that PA box 16 income from your W2.

Additionally, in the DE interview, the credits section, the computed taxes paid to PA are automatically included in the credit for taxes paid to another state.

To verify that the income is only showing once for each state you should view the tax summaries.