topic Re: Moved during 2020 in State tax filing

Moved during 2020

smaurer62 — Sat, 06 Mar 2021 19:59:08 GMT

My step-son moved from NJ to PA during 2020, but worked in PA the entire year. His W-2 is showing part of his wages and state income tax going to PA and part of his wages and state income tax going to NJ. How do I file his State taxes? Do I need to do part-year and non-resident forms for each state, or do I just do a regular state return for each showing only the income listed on his W-2?

Re: Moved during 2020

Hal_Al — Sun, 07 Mar 2021 00:20:25 GMT

Deleted

Re: Moved during 2020

TomD8 — Sat, 06 Mar 2021 20:57:28 GMT

PA will not give a credit for taxes paid to reciprocal states such as NJ. Instead, the taxpayer should enter his entire full-year NJ withholding amount on his part-year resident NJ return. NJ will then refund the excess withholding.

https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Deductions-and-Credits.aspx#:~:text=If%20a%20taxpayer%20claims%20a,complete%20PA%2D40%20Schedule%20G%2DL.&text=The%20credit%20is%20limited%20to,with%20the%20highest%20tax%20rate.

Re: Moved during 2020

Hal_Al — Sat, 06 Mar 2021 22:28:53 GMT

@TomD8 Does reciprocity still apply in the case of part year residents? I know it doesn't in the case of Ohio and it's neighbors (including PA), but I don't know about PA-NJ.

Re: Moved during 2020

TomD8 — Sat, 06 Mar 2021 23:03:14 GMT

In its tax publication that I referenced previously, PA clearly states it will not grant a credit for taxes paid to reciprocal states.

Re: Moved during 2020

Hal_Al — Sun, 07 Mar 2021 00:22:08 GMT

I've deleted my previous answer.

@TomD8 Are you able to instruct poster on how to file his part year returns for both state?