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April 6, 2025
Question

PA Local Tax for Out of State workers

  • April 6, 2025
  • 1 reply
  • 0 views

I live in PA but my company is HQ in NY.  When filing state taxes, i file a nonresident NY return and a resident PA return, and pay state taxes based on the proportion of time I spend in each state, which is roughly 80/20, PA/NY.  For my local PA tax, which is 1%, and filed outside of TurboTax, i can't find a way to similarly adjust my PA income for time worked in NY (and yes, tax paid), the same way i do for PA state taxes.... 
Are PA local taxes not adjusted in the same way that PA state taxes are?

    1 reply

    April 6, 2025

    As a Pennsylvania resident, you must report and pay taxes on all compensation, regardless of where it was earned.  You cannot allocate state wages on a resident tax return and must pay the local tax to your resident locality.

     

    You can claim a credit for the taxes you paid to New York on your resident Pennsylvania tax return.  

    April 7, 2025

    yes, my apologies, i phrased it incorrectly.  I filed correctly, as i get a credit for tax paid to the state of NY.  I have verified that TurboTax forms look like the ones filed by the CPA i used the past couple of years.