Question

New York internship income with a permanent PA residency

Forum|Forum|3 years ago
March 22, 2023
2 replies
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To report, you will need to file a non-resident New York return and a resident PA return. Prepare your New York non-resident return first and pay particular attention to the income allocation screens so that you only include your internship income for NY and no other income.

After preparing both returns, you will be given a credit for your NY taxes paid for the intern income in your PA return.

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T

TomD8

Employee

The general rule is:

Your State of Residence (your domicile or permanent home) can tax ALL your income, regardless of where you earn it.

Other, non-resident states can tax income you earn by working within their borders.

In these situations you must file a tax return in both states, but your home state will allow a credit for taxes paid to the non-resident state. This prevents double taxation.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

C

christopherskean1Author

Thanks so much for the responses! Would I have to claim the income in both PA and NY and then get the credit in PA?

T

TomD8

Employee

Correct. And as @DaveF1006 pointed out, in TurboTax you must complete the non-resident state return before your home state return, so that the program can calculate and apply the credit.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.