DMarkM1
Expert Alumni

State tax filing

Understand.   It appears one of your employer W2s indicates that you lived in WV for the entire time you worked there when in reality you did not.  You had a period in which you were resident in PA but taxes were incorrectly, per the reciprocity agreement, withheld for WV by an employer.  So that W2 indicates you did have income from another state while living in PA. 

 

However, since that state is a reciprocity state you will need to get a refund from WV and pay PA for that income taxation. There will not be any credit for taxes paid to another state on either state return.  If you entered information in your PA return in the "Taxes and Credits" section you will need to "Start/Update" that section and "Delete" zero any entries there.   

 

Since you are not taking income/taxes away from PA you should not need to send in any W2s to PA.     

 

First, in the "My Info" section "Edit" your information and be sure you have indicated your state of residence on Dec 31st was PA and "Yes" you lived in another state (WV) and continue.  Then, still in the "My Info" section, scroll down to "Other State Income" and answer "No" you did not have income from another state.  This is because you will allocate on part-year returns and not a non-resident return.     

 

Next, check for proper allocation entries. You should allocate part of the WV employer wages to PA for the time you worked in WV but were resident in PA. 

 

  1. Enter the form W2 information in the federal interview per your form W2; specifically the state line for the WV employer that did not withhold for PA
  2. Continue to Done with W2s
  3. Edit your PA interview
  4. Continue
  5. Start/Update the "Income/adjustments"
  6. Edit the Employer that only had WV withholding but needs to allocate to PA
  7. If you have not allocated the entire wage amount will show as non-taxable to PA 
  8. Select the option "Make it taxable" >Continue>Edit the employer again>I need to make an adjustment>allocate amount that belongs to PA
  9. If you have already allocated verify the amount and select "I need to make an adjustment" 
  10. Verify>Continue>Done
  11. Finish the PA income interview
  12. Check summary for correct wages for PA

 

In the WV interview you should allocate to WV only the part of that employer wages for the time you lived in WV.

  1. Edit WV interview
  2. Start/Update the "General" section 
  3. You'll eventually arrive at the "Allocation" pages
  4. Allocate Wages/Salaries to "WV while resident" that is less the amount you allocated to PA and zero in the "WV while non-resident" box

Also, if you haven't already, you need to have that WV employer stop withholding for WV and withhold for PA per the reciprocity agreement.

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