It depends on all facts and circumstances. The Pennsylvania (PA) tax system is a flat rate of tax whether resident or nonresident. Paying taxes alone does not constitute residence, however when put together with voting, mailing address and number of days in Pennsylvania (PA) would all be considered in the decision of residency. Either way the PA return must be filed.
If your wife was a DC resident she would be allowed to take a credit for taxes paid to another state. This is only allowed if you are filing a resident state for DC and a nonresident state for PA. You can review the residency requirements for DC as noted in the link provided by @TomD8 and PA by @BillM223. If you decide your wife is actually a DC resident, tax all of her income to DC and use the credit for taxes paid to another state below.
Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state. Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
@DavidC7
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