Non-Resident PA return

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I live in VT (for over a decade) and I have a w-2 where taxes were withheld for PA. The w-2 is from a walmart pennsylvania class action lawsuit payout. This is for not much money, $45 in income and and less than $2 PA taxes. TurboTax is telling me I need to file a PA non-resident return. The information it has gathered from my federal return and populated in both state returns looks incorrect. Specifically providing PA with VT and investment income. As far as I know PA only needs the info from this w-2 and none of my other income. Isn't it as simple as taxes were paid to PA on one W-2 and those taxes should be sent to VT? At this point it feels as if it would have been easier to never cash the check.

MaryK4

Alumni - Intuit

Yes, you should have been able to input an Adjustment in the PA state tax return to remove the Investment income- you may want to go to the allocation of income section and double check this. Unfortunately, if your total PA gross taxable income in excess of $33, even if no tax is due with your PA return you are require to file. I would go back and remove the Investment income then see how much you owe- you may not need to file the return if you do not owe.

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VT_PA_ConfusedAuthor

Level 2

I figured it out in the end, after inserting a day to let my frustration to subside. I deleted both state returns and started from scratch. I started with VT return first then moved on to PA. I found some exclude from PA options that I missed the first time. It seems it is not programmed that well to take into account non resident returns. I had to individually edit each line in the investment income to state PA tax exempt. It would be easier if I could have selected all at once.

Devsd

Level 2

I am having same problem. All my interest, dividend and capital gain income showing up in PA tax return from Federal return, even though I am filing PA return as a non resident. Please let me know how can I remove these incomes from PA return.

Thanks for help!!