Solved: Not double taxed ... but the rate at which you pay...
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New Member

Why did my w-2 from colorado change my refund from pennsylvania?

 
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Level 9

Why did my w-2 from colorado change my refund from pennsylvania?

As a resident of PA, all your income is taxable regardless of where earned.

Complete federal return.

Then complete a non-resident CO return making sure only the CO sourced income is taxed.

Then complete your PA resident return reporting all income, including that earned in CO.  Pay particular attention the the section for " taxes paid to another state" and be sure the PA return contains a Schedule GL where you receive a PA credit for taxes paid to CO (it likely will not be a dollar for dollar credit).to avoid double taxation.

Your CO income is also includable on your PA local earned income tax return.

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Level 15

Why did my w-2 from colorado change my refund from pennsylvania?

Is PA your home state?
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New Member

Why did my w-2 from colorado change my refund from pennsylvania?

yes. So am I being double taxed?
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Level 15

Why did my w-2 from colorado change my refund from pennsylvania?

Did you move during 2018?
Level 15

Why did my w-2 from colorado change my refund from pennsylvania?

Not double taxed ... but the rate at which you pay taxes in PA is based on your total annual income not just what is earned in PA ... doing it this way they can tax you at a higher rate legally.
Highlighted
Level 9

Why did my w-2 from colorado change my refund from pennsylvania?

As a resident of PA, all your income is taxable regardless of where earned.

Complete federal return.

Then complete a non-resident CO return making sure only the CO sourced income is taxed.

Then complete your PA resident return reporting all income, including that earned in CO.  Pay particular attention the the section for " taxes paid to another state" and be sure the PA return contains a Schedule GL where you receive a PA credit for taxes paid to CO (it likely will not be a dollar for dollar credit).to avoid double taxation.

Your CO income is also includable on your PA local earned income tax return.

View solution in original post

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New Member

Why did my w-2 from colorado change my refund from pennsylvania?

Is this for CO to PA or PA to CO?
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Level 9

Why did my w-2 from colorado change my refund from pennsylvania?

It's for a PA resident with CO sourced income.
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Level 15

Why did my w-2 from colorado change my refund from pennsylvania?

Because PA takes the entire annual income into consideration when computing the PA taxes ... review the return carefully to see how this happens.

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