Hi,
My wife and I moved from PA to Maryland halfway through 2024 (6/15/24). We both work for the same company in PA, and mostly work from home in MD, but we do drive up once a week to the office. So essentially for the first half of the year we lived and worked in PA, and for the second half of the year, we lived in Maryland and worked in PA. Neither of us changed jobs, we just moved and mostly work from home.
I am currently working on the PA State return, and coming across the Compensation Summary section – and it lists four of our W-2 sections (one section for each of us for both MD and PA). With the message “If you were a resident of Indiana, Maryland, New Jersey, Ohio, Virginia, or West Virginia (reciprocal wage states) and worked in Pennsylvania you may need to change the wages to zero to claim a refund.”.
When I look at our pay stubs – after our move in June, we are no longer being taxed for PA state on our stubs, only for the local township in PA where the office is located.
- I am curious about the reciprocal wage state situation – do I need to do anything here? When I go into the Maryland sections of each W-2 listed, it shows the correct MD earnings amount and there is a box that says “Make this income taxable in PA”, which I have NOT selected. I assume this is the correct way to move forward, and that I am NOT being taxed by PA for this MD amount. When I go into the PA W-2 sections under Compensation Summary, it assumes the PA amounts (which are correct) should be taxed for PA, which is correct. So – do I need to do anything with this as a reciprocal wage state? If I’m understanding correctly, TT is already determining the correct situation for me, but I want to make sure I’m not misunderstanding.
- After moving on from this section, I’m taken to the Interest income summary section. I have a few things on this section – we both have High Yield Savings Accounts, and we have a joint Checking account that earns us interest, as well as some brokerage accounts. This section suggests that I need to “edit (change) each interest income item to reflect interest earned only while you were a Pennsylvania resident.”. So in this section, I need to calculate and remove the amount of money we earned as interest while we were in Maryland. I’ve taken the total dollar amount for each account and divided by 12, then multiplied that number by the number of months we were in PA. Then I’m putting the number that should be taxed by PA into the “Adjustment Amount” box as “Other adjustment”. I’m not completely clear on if what I’m supposed to put in the box is supposed to be the number that is taxed by PA (earned in PA), or the number that should not be taxed by PA (earned in MD). Which is the correct way?
Thank you for your help.
