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nwalters597
New Member

I live in PA, but worked in Delaware. My W-2 from DE says that nothing was withheld from DE, but that PA state taxes were withheld. Still saying I owe state taxes to PA?

I have never lived and worked in a different state so this is new to me. My W-2 from Delaware (non-resident state) is saying that no DE state tax was withheld, but that $10 in PA tax was withheld (I just started working there in late 2018). Now, when I went to file my PA resident state return, it is saying I owe $10. Do I actually owe this money, even if it my DE W-2 says it was withheld? Also, is there a way to have this automatically withheld for next year, so that I don't end up having to repay the tax when I file next year?

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Accepted Solutions
re2boys
Level 9

I live in PA, but worked in Delaware. My W-2 from DE says that nothing was withheld from DE, but that PA state taxes were withheld. Still saying I owe state taxes to PA?

You will first need to complete your federal income tax return.

When asked if you made income in a state where you don't live say yes.

Then complete a DE non-resident return but only showing the income you earned while working in DE ( I assume you had no other DE sourced income).  Since no DE taxes were withheld, you may owe a balance due to DE.

Nex complete a PA resident income tax return showing ALL income, even that earned in DE.  Be sure this return contains a PA Schedule G  where you show the income that was earned in another state (wages) and the tax liability  paid to the other state.  Schedule G should compute a credit on the PA tax return so that the DE income is not double taxed.  The PA taxes withheld should show up on this PA return.

TurboTax won't prepare your PA local earned income tax return but all your earned income (W2 and self-employment ) is reportable on the local earned income tax return

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1 Reply
re2boys
Level 9

I live in PA, but worked in Delaware. My W-2 from DE says that nothing was withheld from DE, but that PA state taxes were withheld. Still saying I owe state taxes to PA?

You will first need to complete your federal income tax return.

When asked if you made income in a state where you don't live say yes.

Then complete a DE non-resident return but only showing the income you earned while working in DE ( I assume you had no other DE sourced income).  Since no DE taxes were withheld, you may owe a balance due to DE.

Nex complete a PA resident income tax return showing ALL income, even that earned in DE.  Be sure this return contains a PA Schedule G  where you show the income that was earned in another state (wages) and the tax liability  paid to the other state.  Schedule G should compute a credit on the PA tax return so that the DE income is not double taxed.  The PA taxes withheld should show up on this PA return.

TurboTax won't prepare your PA local earned income tax return but all your earned income (W2 and self-employment ) is reportable on the local earned income tax return

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