State tax filing
Yes. State residents are taxed on income earned everywhere, so your Massachusetts RSUs are taxed by Pennsylvania.
Additionally, since the RSUs were granted as a result of work done in MA, they are also taxed by the Bay State.
PA will give you a credit for tax paid to MA on the PA tax return. It is not full credit. PA has a flat tax rate of 3.07%. The MA rate on wages is 5%, so PA will give you credit for MA tax paid up to the 3.07%.
PA taxes 401(k) contributions, so PA wages are typically higher than federal.
Your PA state wages should be $221,000.
- On the screen “Compensation Summary,” select Edit on line for MA.
- On the screen “Verify this income,” select Entire amount of this income is not taxable to PA
