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February 8, 2020
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State Taxes in multiple states

  • February 8, 2020
  • 1 reply
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My son lives with us as a resident of PA.  He is a full-time student. Last summer he had a 10-week internship out of state.  The address of the company on the W-2 is NJ, he actually worked 9 weeks in TX and 1 week in NY.  His state and federal wages on the W-2 were $18K.  His state withholding was $4.51 for NY on wages of $1,334.   

 

When I do his state taxes, I assume he will file a return for NY for his one week of work.  On his PA return will he pay PA state taxes on the other $16.7K since NJ and PA have a reciprocal agreement and TX doesn't have state income tax?  OR, will he pay NY tax as above and not have to pay state tax on the money earned while in TX?

    Best answer by DavidS127

    As a Pennsylvania resident your son will include his entire gross income on his PA return, and then claim a credit for the taxes paid to NY.

     

    Prepare the NY nonresident tax return first, to provide TurboTax with the information needed to calculate the PA credit for NY taxes paid.

    1 reply

    DavidS127
    DavidS127Answer
    February 9, 2020

    As a Pennsylvania resident your son will include his entire gross income on his PA return, and then claim a credit for the taxes paid to NY.

     

    Prepare the NY nonresident tax return first, to provide TurboTax with the information needed to calculate the PA credit for NY taxes paid.

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