TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Question

PA state tax

Forum|Forum|4 years ago
February 23, 2022
1 reply
0 views

Hi I am a full year resident of PA and collected some unemployment from NY. I did the NY non resident return and was taxed on my investment income. I am filling my PA return and they are also taxing my same investment income. Is there a way to get a credit from PA on this investment

Not A Product Question

Level 15

Investment income is generally not taxable to nonresidents unless it is related to employee stock. NY unemployment received by a nonresident is taxable to NY.

If your investments are taxable to NY you can claim a credit on your PA return. Go to Credit for taxes paid to other states.

PA does not tax unemployment so you can't claim a credit for tax paid on unemployment. You'll have to manually adjust the numbers. For example, if your NY income was $10,000 and $8,000 was unemployment and $2,000 was investment income, then you would report $2,000 as income to PA for the tax credit and 20% of the NY tax based on the income percentage ($2,000/$10,000).

Learn more: New York State Tax Treatment of Stock Options, Restricted Stock, andStock Appreciation Rights Received by Nonresidents and Part-Year Residents

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

tom_kozak61Author

Level 2

Yes this was helpful. Do I take the credit on the income or the tax? I think it’s the income

Level 15

You take credit for the tax paid in a nonresident state. Here is how the 'other state tax credit' works:

The credit for tax paid to another state on the same income will be the lesser of:

the tax liability actually charged by the nonresident state, OR
the tax liability that would have been charged by your resident state

If you don't have tax in the other state, then there is not going to be a credit for that state on your resident state return.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"