State filing (PA) for relocated biz in another state (FL)

[John_RS]

At end of 2024 I closed my single-member LLC biz in PA which has state tax.  I established a single-member LLC biz in FL under the same in early 2024 as it was easier to close the PA biz than to transfer it to FL (and took a process and months to close the PA biz).  My FL residence was established in late 2023.

Anyway, I still had some biz in PA w/ the airport, a tax-exempt entity (they have papers for that), of approx 15K value from 2024.  I suspect I will need to file PA state taxes for the 15K and all income for 2024 under my Federal 1040 and Sched-C filing.  Or is it that my residence in FL circumvents any need for PA state filing, or do I have to file all 2024 income on a PA state return? Please advise...

If it matters, I'm using TurboTax H&B 2024 downloaded & installed to my Windows PC.

[PatriciaV · Accepted solution]

Yes, you will need to file a Pennsylvania nonresident tax return and report all income sourced in Pennsylvania for the year. Any income sourced outside the state would not be included, as long as you became a resident of Florida by 12/31/2023. Florida has no state income tax.

[John_RS]

So I went on to continue the filing process of the PA-40 in TurboTax H&B to include the PA Schedule-NRH per having PA related income from the biz.  Problem is that TurboTax does NOT place the Schedule-NRH Part-II Line-7 amount to the PA-40 Line-4 as stated in the PA-40-NRH instruction (as "Enter the amount on Line 4 of PA-40.")  It instead adds it to the Line-4 values under Schedule-NRH and INCLUDES the biz Schedule-C profit/loss amount leaving a taxed net income greater than the actual net income of of all biz for the year.  I suppose I can just override and simply file with the Schedule-C amount removed on the PA-40 (resulting in the NRH amount on Line-4).  Please advise as this is quite confusing and likely a bug in TurboTax H&B that could have severe negative affect to many others if so.  

[KeshaH]

If you'd like, we can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states, if any, that are included on the return.

[John_RS]

So I decided to redo the PA-state via the "Go over Pennsylvania again" button-click and it seems more rational now, though I also did the "Send Tax file to Agent" as suggested. The PA-state tax amount and PA Schedule-NRH form seems to show the right values, at least more rational, but I'll await your review to confirm. Do note that I did manually enter 0 on the PA-40 form "Gross compensation" line prior to the redo in case it would help. I suppose any manual edits on the PA forms are wiped away from the redo effort. I also noticed that after the redo that the PA Schedule-NRH for some reason added the same amount from line-2 "Wages, salaries,..." to "Sales" on line-3. I manually entered a 0 on line-3 after the redo though it should not matter to PA as there was no value for line-3 in the PA column.

So you now have the tax-file, let me know any thoughts or further edits needed. The token# is 172710652-15313440, non-resident state is PA, resident state is FL (no other states involved).

[KeshaH]

Thank you for sending over your token. It looks like now that you've made the corrections, everything is flowing properly and you should be good to complete your return!