My son is a full time student at West Virginia Univ., resident in PA. He has W2 incomes from West Virginia and Indiana. How many state returns does he need to file?

[jstreeservice]

Both W2's (line 15) are PA

[re2boys · Accepted solution]

Due to the reciprocal agreements PA has with both WV and IN, only PA would tax his income.  He only needs to file a PA resident return and report all income, regardless of where earned.

However, if either WV or IN withheld WV or IN state income taxes, he will need to file a non-resident turn in each state to receive a refund of any taxes withheld. PA will not give him a credit for taxes paid to another state as those taxes are refundable directly from the other state.

Don't forget that all earned income, regardless of where earned is reportable and taxable on his PA local municipal earned income tax return (I'm not sure about Philadelphia).