My daughter had a campus job at her NYS university in 2020. when the pandemic hit and her school closed, she was still able to do campus job off-site at home in PA - digital design work.
For this purpose, let's say she made $1000 gross pay which is what box 1 federal wages indicates. Her NY W-2 says she made $1000 in box 15 and took out state income tax. Her PA W-2 says she made $200 and took out state and local income tax. The school payroll dept wasn't very helpful. They said that because her last gross paycheck of $200 was paid out in May when school was closed and she did the work at home, it is considered PA earned income. I entered the info as one W-2 with 2 entries for box 15 - NY earned income as $1000 and PA earned income as $200. However, when you do the PA return, Turbotax says you earned $1200 for this job.
She is claiming as an independent in 2020 and her total income was such that she didn't owe any taxes after the standard deduction and household credit was applied. So she will get all her NYS taxes paid refunded.
On her PA taxes, I turned off the credit for NY taxes paid so she doesn't get a tax credit on her PA taxes. But what to do about the "extra" income noted on the PA state wages portion of the W-2? Any thoughts?
