Question

PA State Tax Return

Forum|Forum|6 years ago
January 27, 2020
1 reply
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I live in PA, but work in DE. For some reason, when I started filing for my PA tax return, it said that I made double my income even though I only work in DE. My W-2 for PA has the almost the same state wages (box 17) as my W-2 in DE. It seems that both state W-2 are being accounted for in PA. How would I fix this issue when I file my PA tax? Should I put 0% allocation for my PA income since I didn't actually make money in PA?

Also I my employer did not withhold my PA state, but withheld my DE taxes. So should that offset what I owe in PA?

DMarkM1

Since PA and DE do not have a reciprocity agreement, you have to file in both states. PA is your resident state so you must pay taxes on all income from all sources even if earned in DE. For DE you only file for the income earned in DE as a nonresident. You want to complete DE nonresident return first. Take note of the taxes you owed to DE. Then fill out out your resident PA return and you will claim a credit for the taxes paid to DE for the income that was double taxed by PA. Here is a link that will help guide you.

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G

glalata08Author

Thank you for your reply. So I was able to get tax credit from DE, however how do I fix the part for the W-2 since it is showing I made income in both PA and DE which made my actual income double? Even though I got tax credit from DE it is showing I still owe about $1800 to PA because it takes to account that I also made income in PA which I didn't. Should I put that the DE income is not taxable income in PA then? Because if I write that my PA income is non taxable then I get an error.

DMarkM1

If everything is duplicated except the state tax boxes 15-17, then enter 1 W2 with all information, but only DE as the state. PA will tax that income as PA resident.

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