State tax filing

Yes. For 2024, file:

• NE tax  nonresident return and NE will tax the income.
• PA resident so you will file a PA resident return and they will give you a credit towards the tax you paid NE. The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state,  if they have a higher tax rate along with differences in how the taxable income is calculated.

If your lump sum is from a NE source of income, it is taxable to NE. See NE taxes. Talk to the issuer of your lump sum to determine if it came from you working in NE or is unrelated to your NE income. You can also contact NE DOR.

• If it is unrelated, they should stop withholding NE tax. 
• If it is NE source income, you will continue filing both state returns.

Detailed information on the types of income that must be listed and included on line 1, Schedule III is available on DOR’s website. A partial list is shown below: 

• Wages, salaries, tips, and commissions; 
• Severance pay associated with Nebraska employment; 
• Dividends, interest, and other passive income; u Business income; 
• Farming and ranching income; u Partnership, S corporation, LLC, estate, or trust income;