Are out of state wages taxable in PA?

[rkelly1347]

If I worked in another state, are those wages taxable in Pennsylvania?

[re2boys]

If you are a PA resident, all your income is taxable to PA, regardless of what state it was earned in.  In some situations, it is also taxable to the other state, but PA will grant a credit for taxes paid to the other state.

However, PA also has reciprocal agreements with some states where the other state will not tax the wages of a PA resident.  Off the top of my head, OH, NJ, MD, VA, IN, WV are reciprocal states.

If you provide more specific information, you may bet a more specific answer for your situation.

[The doc1]

If I earned income from another state”illinois” before becoming PA resident, but then moved to PA. Do I report that income to PA and do I clink “earned income in another state” in PA special situations.

[KatrinaB48]

The above information is correct. However, since you moved into the state of Pennsylvania during the year then you will file a part-year resident return. Therefore, you will pay state tax for the income earned during your period of residency in Pennsylvania. You will allocate your income to the state you were living in when you earned it. The TurboTax software will ask you to separate the income you earned or to verify the allocation amounts we already calculated for you. Please view this TurboTax FAQ for more information about allocating income when preparing a part-year state return. 

[waterboyjack]

understanding that income earned in Maryland is taxable in PA, I don't know how to answer the question about it on the Pa turbotax form.

[MaryK4]

In TurboTax, if it asks if the income was taxable in PA, say YES.

Pennsylvania and Maryland have a reciprocity agreement- so if you are a Pennsylvania resident but worked in Maryland, you only have to report and pay tax on that income in Pennsylvania.  

@waterboyjack

[dfuhrman3975]

I moved from Texas to Pennsylvania in August of 2020. I had W2 wages in Texas till COVID hit in March. I collected unemployment till June and then decided to retire. Are my W2 wages from Texas and my unemployment from Texas subject to PA state income tax?

[SamS1]

No.  Only income earned in PA while a PA resident would be subject to PA taxes.  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. 

The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020  taxes.

[ycchan]

so if I am full year PA resident, but wage income is earned out of state, for example wage (w-2) income is earn from Delaware, the wage income earned in Delaware are not taxable in PA?

[RaifH]

No, your resident state has a right to tax your income, no matter where it is earned. 

In your example, Delaware would tax the income you earned there. Pennsylvania, as your resident state, would also tax this income, but you will receive a credit on your resident Pennsylvania return for the tax you paid to Delaware on this same income. This avoids double-taxation. It is important to complete your nonresident state first so the credit for taxes paid can correctly calculate on your resident state's return. 

The examples they were talking about above had to do with part-year residency. In that case, PA would only tax the income you earned while you were a resident there, or if you had PA-sourced income after you moved out of PA. 

@ycchan