I live in Texas, my S-corp is in Michigan. I worked for a Pennsylvania company where state taxes were deducted, what is my income earned while not a resident of PA?

[Mike9241]

where do you actually perform the work?  is there a physical location for the S-corp in Michigan or was that just the state of incorporation?  What kind of tax form did you get from the PA company?   oh,  did the S-corp pay you a salary? 

[desiree-lambert3]

Hi there! 

So I was working remotely for a client directly (they were paying me hourly to do work remotely from Texas) this is the PA company that I received a W-2 from. I had state taxes deducted. I only worked for them Jan-March 2020. 

My S-corp is incorporated in Michigan bc that is where my business partner lives, but I have never stepped foot in Michigan and perform the work in Texas. I do get a salary from my S-Corp. While the PA company became our first client, my hourly position with them had been eliminated 2 months before I began collecting my salary from my own company. 

When I received my schedule K-1, it was just for my business and not for this client. 

But Turbo tax is asking for my income while not a resident of PA...(which would be all of it?) I already know that I do not qualify for a state tax break. But they are asking for my 1099-r's as well...which has nothing to do with either my business nor them- it was a rollover from being laid off at the end of 2019. 

Any advice would be amazing!

[JeffreyR77]

Yes, your income earned while not a resident of PA would be all of it. 

That's not to say you won't have income tax liability to PA or to a city or township in PA as a nonresident. 

Aside from Philadelphia that will be beyond the scope of TurboTax to prepare and submit.

TurboTax asks for your Form 1099-Rs to ensure no income documents get missed or any documents that had withholding on them get missed. 

If your 1099-R has a G in Box 7 you are fine, G indicates a rollover which has no tax impact.  It it has any other code, you should enter the 1099-R information and follow through the TurboTax interview to ensure you pay the lowest tax possible.