Hi All, I am a Delaware resident and my employer is in PA. I received my first pay and to my surprise my employer is withholding taxes for Delaware and PA. I am confused to why double withholdings for states since I am resident of Delaware. Any help on this how I can avoid getting double taxed?
You'll need to sign in or create an account to connect with an expert.
Unfortunately, you are subject to taxation in both states.
While Pennsylvania does have tax reciprocity agreements with several states, Delaware does not participate in any of these agreements. Delaware taxes residents on the income they earn in Pennsylvania. Pennsylvania taxes non-residents on the income they earn in the state.
So you are not taxed twice, you are
allowed a credit for the taxes paid to Pennsylvania. The net effect is that your
overall state tax rate will be at the higher rate between the two states.
When you prepare your tax returns, you will need to prepare your PA return before you prepare your DE return
For more information, follow these links:
Unfortunately, you are subject to taxation in both states.
While Pennsylvania does have tax reciprocity agreements with several states, Delaware does not participate in any of these agreements. Delaware taxes residents on the income they earn in Pennsylvania. Pennsylvania taxes non-residents on the income they earn in the state.
So you are not taxed twice, you are
allowed a credit for the taxes paid to Pennsylvania. The net effect is that your
overall state tax rate will be at the higher rate between the two states.
When you prepare your tax returns, you will need to prepare your PA return before you prepare your DE return
For more information, follow these links:
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
KSFall2018
New Member
adamsfam1121
New Member
alien1676
New Member
Aleyana-lawson
New Member
mms4063
Level 1