I worked and live in PA all of 2016 as a Utility consultant. My employer is based in MO, so they withheld MO tax and no PA tax. Am I stuck with being taxed twice?

[DianeW · Accepted solution]

No.  You are only required to file and pay tax on wages earned where you live and work regardless of where the employer is located.  The employer should be withholding PA tax only because you live and work physically in PA.

File the MO return as a nonresident and with no earnings in that state.  They should issue a full refund.

File PA as a full year resident, there will likely be a balance due so you can try to wait for the MO refund to pay PA.  You may need to attach a copy of the PA return for MO.

If you can e-file both, then they don't always require the copy to be mailed.

When you enter your W2, for ease of completing the state returns you can "Add another row"  for the state boxes to add PA.

You can go directly to the area to enter your W2.

1. Sign into your account and select your current return.

2. Select  My Account on the top right and then select Tools

3. Select Topic Search (see attached image)

4. Search for W2 and select Go

5. Follow the interview to enter your information.