Question

Do I need to file a Pennsylvania state return if I lived in another state but worked in Pennsylvania during part of the year?

Forum|Forum|5 years ago
February 2, 2021
2 replies
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TurboTax Deluxe Online

Maybe. Every state has their own rules. Please see this LINK for specific information on filing requirements for part-year residents and non-residents.

Nonresidents of Pennsylvania. PA law taxes the income you earn, receive and realize from PA sources. Some exceptions apply; see below for additional detail.

Part-Year Residents of Pennsylvania. Part-year residents are subject to PA personal income tax on all income earned, received and realized from all sources when residents of PA. Part-year residents are also subject to PA tax on income earned, received and realized from sources within PA when they were not a PA residents. Part-year residents are not subject to PA tax on ordinary interest, dividends, gains, intangible property or gambling and lottery winnings from PA sources while a nonresident. Some exceptions apply; see below for additional detail.

DJS

Employee

Yes. Every resident, part-year resident or nonresident individual must file a Pennsylvania Income Tax Return (PA-40) when he or she realizes income generating $1 or more in tax, even if no tax is due. Nonresidents are subject to tax only on income form the eight enumerated classes of income earned, received or acquired from Pennsylvania sources. The eight classes of income are: compensation; net income (loss) from the operation of a business, profession, or farm; net gains (loss) from the sale, exchange, or disposition of property; net income (loss) from rents, royalties, copyrights, and patents; interest; dividends; estate or trust income; and gambling or lottery winnings.

Refer to the Pennsylvania Personal Tax Guide : https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/default.aspx

Answers are correct to the best of my ability but do not constitute legal or tax advice.**If this post is helpful please click on "thumbs up"**

J

jc12583

What qualifies as income from a Pennsylvania source? Does the fact that a company is headquartered in PA automatically mean income from that company comes from a PA source? Is there a distinction for a nonresident who never worked in PA? For instance, would a nonresident, who worked remote full time, that received wages from a PA based company, be required to pay tax and file with PA as well as their resident state? If so, wouldn't that be double taxation?

J

JotikaT2

Most likely, if the business is located in Pennsylvania, then yes, any income earned from them is considered to be from PA sources.

As a nonresident, you would need to file a nonresident state tax return to report the income from PA, but you will also be able to claim a credit for taxes paid to PA on your resident state return. This eliminates the issue of double taxation as you will receive a credit on your resident state tax return for the income also taxed in PA.

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