topic Business Income in Business & farm

Business Income

Lore — Thu, 02 Apr 2020 21:03:03 GMT

When I do my federal taxes my business income shows up as number A. When I do my state taxes, the business income is doubled. I see this at the beginning of the state review: "Don't worry if you see double-taxed income as you go through your PA return. Later on we'll help you get cred that offsets paying double taxes." I have now completed my state return but the 'double' was not removed.

Re: Business Income

ThomasM125 — Thu, 02 Apr 2020 21:30:30 GMT

Could you please tell us what state you are working on so we can look at the forms to see how they work?

Re: Business Income

Lore — Thu, 02 Apr 2020 21:42:37 GMT

Yes! MD and PA. We live in PA but earned income in MD? My question is for the PA tax.

Re: Business Income

ThomasM125 — Sun, 05 Apr 2020 20:14:16 GMT

I went through the Pennsylvania (PA) tax program in TurboTax and I didn't see an opportunity to enter business income in addition to what is on the federal return. Do you mean the business income is included in Maryland and PA? If so , that is how the state returns work. To compensate for that, you receive a credit on your your PA return for that tax pain in Maryland.

So, the income is supposed to appear on Maryland and PA tax returns, but you get credit on your PA return against you PA tax for the income tax paid in Maryland. So, you are not getting double taxed.