Error on PA-40 Gross Compensation Worksheet

Forum|Forum|1 year ago
February 3, 2025
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I earned income in both PA and NJ in 2024. I am having an issue where the "Non-Pennsylvania W-2 to Schedule SP, line 6" line on the PA-40 Gross Compensation Worksheet is double counting my income in PA, and is listing it as P income + PA income +NJ income. My question is does this even matter as the gross compensation worksheet says it is only for personal records, and if it does matter, how can I fix before filing?

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AmyC

Employee

If you live in PA, all income is taxable. Your w2 entry for PA should not include the NJ income. Return to the w2 screen and correct the PA entry.

PA will tax all income and give you a credit towards the NJ tax paid. The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state, if they have a higher tax rate along with differences in how the taxable income is calculated.

Be sure to view your return and check that the PA income is the correct amount and that you have a credit for the NJ income tax paid.

To see your forms: