I was living and working in Japan and moved to Penn in December. I already paid my foreign income tax so why am I being charged Penn State Income Tax on that money?

chunmi — Mon, 03 Jun 2019 20:09:03 GMT

A little more detail: I do not have to pay federal taxes on that money because of the tax agreement between the two countries and the foreign earned income exclusion. However, Turbo Tax seems to be calculating all my yearly income as being earned in the State of Pennsylvania when I've only been here for a month, and was unemployed for that period. Plus I had already paid income+residence taxes on that money in Japan. Is there some way to fix this issue with turbo tax? Or am I missing something regarding Pennsylvania taxes?

If you are a US citizen or green card holder you can excl...

KarenJ — Mon, 03 Jun 2019 20:09:04 GMT

If you are a US citizen or green card holder you can exclude income from your federal return using the foreign earned income exclusion and/or the foreign tax credit. You cannot exclude income due to the treaty.

If you did not file PA taxes in 2017 and only moved to PA in December 2018 , you should not be paying tax on income you earned in Japan.

Part-Year Residents of Pennsylvania. Part-year residents are subject to PA personal income tax on all income earned, received and realized from all sources when residents of PA. Part-year residents are also subject to PA tax on income earned, received and realized from sources within PA when they were not a PA residents. Part-year residents are not subject to PA tax on ordinary interest, dividends, gains, intangible property or gambling and lottery winnings from PA sources while a nonresident. Some exceptions apply; see below for additional detail.

topic I was living and working in Japan and moved to Penn in December. I already paid my foreign income tax so why am I being charged Penn State Income Tax on that money? in Deductions & credits

I was living and working in Japan and moved to Penn in December. I already paid my foreign income tax so why am I being charged Penn State Income Tax on that money?

If you are a US citizen or green card holder you can excl...