DianeW777
Expert Alumni

Education

Let's take this one step at a time. Keep in mind the Schedule W should be completed without any intervention once you follow the steps below to enter your W-2. There is no reason for concern because you are making entries to correctly report your wages for both Delaware (DE) and Pennsylvania (PA).

  1. First, figure out exactly how many days you worked in DE for the year. 
  2. Next, divide that number by the total days you worked during the year. Result is the percentage of income earned while working in DE
  3. W-2 Entry should be two states:
    1. PA and state wages for the days worked in PA
    2. DE state wages for the days worked in DE - enter all the DE withholding in this line also
    3. Complete your W-2 entry
    4. Go through the DE return first so that you have the correct taxable wages and the tax paid to DE (not withholding)
    5. Go through the PA return you will select Taxes and Credits > Continue to add DE it not already there.
    6. On the screen 'Do you have any double-taxed income from Delaware?' Be sure to put the same wages for you (Your Amount)  in the slot as is reported on the DE return
      1. It will be the amount you entered in the W-2 correctly for DE (2. above).
    7. This is reported on PA Schedule G-L

You can view the PA tax summary by using the steps below and look for your credit on Total credits and payments.

 

See details below for how this works for the Other State Tax Credit. 

 

State Returns - Your resident state requires you to include all worldwide income. Assume both states require income tax returns to be filed: 

  1. Report the income on each state return that is from the nonresident state
  2. Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

  1. the tax liability actually charged by the nonresident state, OR
  2. the tax liability that would have been charged by your resident state

In most cases complete your nonresident state first.

 

@user17711871756 

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