Retirement tax questions


@magicstar41000-y wrote:

Opus 17,

Thank you very much for your explanation. 

The school is in PA.  Income withheld on the w2 is reported to MA.  Total income level requires to file tax return, but don't need to file tax return for PA?

 

Thank you!


If Massachusetts is your home state, you file a resident MA return and report this income along with any other income you have.  (If your income is below the filing threshold for MA, you may not be required to file at all, but you would need to file to get a refund of the withheld taxes.)

 

Here is the page that discusses PA residency.

https://www.revenue.pa.gov/formsandpublications/papersonalincometaxguide/pages/brief-overview-filing...

You are probably domiciled in MA, and your abode in PA is not permanent, so you are not a statutory resident.  Therefore you are a non-resident of PA.  You are required to file a non-resident return no matter how small your income is, even if you owe no tax.  On your PA non-resident return, you only report your PA-source income, and not income from other states.

 

In Turbotax, you would prepare the PA non-resident return first, then the MA resident return.  That way, any PA state you owe (if you owe it) will be applied as a credit to your MA return. 

 

Because you need to file a federal and 2 state returns, you might not be able to use the free version of Turbotax, even though your income is small.  If you find that you are being asked to pay, you may want to look into other software providers through the IRS FreeFile program.