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Returning Member
posted Apr 2, 2024 11:03:42 AM

Husband & Wife live in PA, H works only in DE & W only in PA. Sch. G-L has his DE wages in worksheet column A. This amount is reduced for 408 (p) contribution (W-2 line 12 (s)). PA does not allow this reduction. Should column B include PA $ or total?

0 2 1407
2 Replies
Expert Alumni
Apr 2, 2024 2:02:55 PM

Column B in the "Other State Income and Tax Smart Worksheet" on the Schedule G-L is the portion of the amount in Column A that applies to the owner of the credit being calculated.  Since you are the only one with DE wages, the entire amount shown in Column A belongs in Column B in that worksheet.  

 

A Schedule G-L is required for each spouse who has non-resident income being double taxed; so if your spouse had a portion of the DE compensation shown then the Column B amounts would be apportioned on each G-L.   

Returning Member
Apr 5, 2024 10:48:50 AM

Doesn't answer the question. 

Taxpayers are PA residents, but William works in DE and there is no reciprocal agreement between DE & PA. The non-resident state's (DE) W-2 has the DE wages listed, in # 1 and 15 which is net of the 408p savings.

PA tax law does not allow 408p savings to be deducted from the wages on the PA-40 tax return.  But the PA Schedule G-L automatically posted the net of 408p amount in item A.  So, the 408p amount is not included on the Schedule G-L. PA said the Schedule G-L is not correct and disallowed the entire DE income tax credit effectively causing these wages to be taxed in both state.  To correct this problem should the 408p amount (W-2 12s) be manually added to the PA Schedule G-L?    If so where and how?