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State tax filing
You are correct to file a part year resident for each state. These two states, Pennsylvania (PA) and West Virginia (WV), are reciprocal states.
A reciprocal agreement, also called reciprocity, is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns in the future as full time resident.
- You will file the WV return and report only the income earned while you were a resident there. You will include all WV state tax withheld by your employer as indicated on your W-2. (if necessary you can put the correct wages for each state in the federal W-2 entry).
- You will file the PA return and report only the income earned while you were a resident of PA. Since your employer in WV did not hold PA tax while you were a PA resident you should still answer Yes to the question '...our employer withheld PA income tax." Is that correct?' This keeps the understanding clear in TurboTax even if there is no PA withholding. We want to be sure the reciprocal status is understood.
- Do not mail your W-2s in to PA, it's unlikely they will request them but if they do, you can always mail them later.
- If you need to write a statement, simply put you can write 'Reciprocity'.
Please update here if you have any additional questions.
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‎February 6, 2024
7:55 AM