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

[SweetieJean]

Is PA your home state?

[abr1017]

yes. So am I being double taxed?

[SweetieJean]

Did you move during 2018?

[Critter]

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.

[re2boys · Accepted solution]

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.

[abr1017]

Is this for CO to PA or PA to CO?

[re2boys]

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

[Critter]

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