I was a student in Ohio and made a small amount of money. Can I just include it on my PA tax form?

[Hal_Al · Accepted solution]

It depends on the source. If it was W-2 WAGES*, you can and must include it on your PA return. If it was from self employment, you are required to file an OH non resident return and report the income. PA will give you a credit or partial credit for the tax you pay OH. So, you will probably come out even, other than the cost of preparing the OH return. Some people with a "small amount of money" will just file their home state. But it's not technically correct.

* Ohio has a reciprocal agreement, on wages, with all neighboring states. No Ohio state taxes are withheld or due and you do not need to file an OH return. But your home state will tax you on your Ohio income.

If Ohio taxes are mistakenly withheld, you have to file an Ohio return to get a refund. You should ask your employer to stop withholding so you don't have to file an Ohio return every year.

However the reciprocity agreement does not apply to local city taxes. You are not required to file an Ohio local city return, but you are also not entitled to a refund of the city withholding (box19 on your W-2), unless there was an error in the amount. Any local municipal taxes withheld in OH can be used as a credit on the PA local return.