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New Member
posted Jun 4, 2019 7:26:08 PM

I live in Delaware and work in Pennsylvania. How do I get credit for taxes paid to PA, or do I have to pay tax to both states?

0 4 18962
4 Replies
Level 1
Jun 4, 2019 7:26:10 PM

You will file a non-resident income tax return for Pennsylvania and a resident tax return for Delaware. 


You will report the same wages in both return. 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. If Delaware comes out to a higher amount, you will owe them money with your return. If Pennsylvania comes out as the higher rate, you will owe nothing to Delaware after filing that state’s return.

Make sure you complete the PA non-resident tax return first to get the credit on Delaware tax return. 

See : Delaware on Out of State Income

New Member
Jun 4, 2019 7:26:13 PM

Where do I put the credit for the tax that I paid in Pennsylvania on the Delaware state tax form?   I haven't been able to find it.

Level 1
Jun 4, 2019 7:26:14 PM

It should automatically put in the credit if you complete My Information correctly. Make sure you have your residence of Delaware and that you earned income in Pennsylvania. When you enter your W2 in the Income section, make sure you include the taxes withheld by PA. When I did a test, I received a refund of most of the taxes withheld by PA and the Delaware tax owed went down significantly.

New Member
Jun 4, 2019 7:26:15 PM

Thank6