Work from home in entire year (2022) in DE. Do i need to pay PA income tax?

Forum|Forum|3 years ago
January 27, 2023
2 replies
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I worked from home in the entire year (2022) in Delaware. My employer is located in Pennsylvania. I am a Pennsylvania non-resident.

According to the paragraph I copied from the official PA division of revenue, I don't need to pay PA income tax, right?

"A non-resident employee who is required to telework full-time from home in another state should treat his compensation as non-Pennsylvania source income even if his employer is located in Pennsylvania. In those situations, the employer is not required to withhold on the employee’s compensation."

Best answer by TomD8

@manbeing --

The key word in the quote you referenced is "required". There are definitely circumstances in which a non-resident telecommuter is required to pay PA income tax. This Q&A from the Pennsylvania Dept of Revenue details the rules:

https://revenue-pa.custhelp.com/app/answers/detail/a_id/3599/~/how-are-telecommuters-wages-taxed-in-pennsylvania%3F

P

PattiF

Yes, you are correct. You do not need to pay PA income tax for your remote work.

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M

manbeingAuthor

Employee

Thanks @PattiF then do I still need to file PA-40 (non resident status) this time? --- enter '0' on all fields on PA-40?

T

TomD8Answer

Employee

@manbeing --

The key word in the quote you referenced is "required". There are definitely circumstances in which a non-resident telecommuter is required to pay PA income tax. This Q&A from the Pennsylvania Dept of Revenue details the rules:

https://revenue-pa.custhelp.com/app/answers/detail/a_id/3599/~/how-are-telecommuters-wages-taxed-in-pennsylvania%3F

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