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New Member
posted Jun 3, 2019 10:40:09 AM

Can I deduct what I pay into city wage tax from my PA state taxes? And if so, where do I do that in Turbo tax?

specifically Philadelphia city wage tax

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1 Best answer
Level 7
Jun 3, 2019 10:40:10 AM

No, your Philadelphia local wage tax is separate from your PA state return and there is no available deduction for these taxes on your state return.  However, this amount would be a deduction from your federal return as a local income tax paid on Schedule A if you are itemizing your deductions.  TurboTax would automatically include this amount as long as you entered it into your W2 section in the Federal section.

1 Replies
Level 7
Jun 3, 2019 10:40:10 AM

No, your Philadelphia local wage tax is separate from your PA state return and there is no available deduction for these taxes on your state return.  However, this amount would be a deduction from your federal return as a local income tax paid on Schedule A if you are itemizing your deductions.  TurboTax would automatically include this amount as long as you entered it into your W2 section in the Federal section.