turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

PA local income taxes for out-of-state resident?

I worked remotely for an employer located in PA for for less than a month, while residing in Michigan.

 

However both PA state and local taxes are withheld on my W2. 

 

I read in this forum that "Only residents of the local jurisdiction are required to file a local return." I wanted to confirm this is correct. Does this mean I don't have to file a PA local return since my permanent address during the time I worked for the PA employer was MI? 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

4 Replies
ThomasM125
Expert Alumni

PA local income taxes for out-of-state resident?

You would have to check the tax regulations in the municipality where your employer's office was located to see if you are subject to a local tax there. However, typically local taxes are assessed on individuals that either live or work in the municipality. 

 

As far as Pennsylvania state tax is concerned, it seems you should not be subject to tax there if you did not physically work in Pennsylvania per this from the Pennsylvania Department of Revenue:  PA Telecommuting tax regulations

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

PA local income taxes for out-of-state resident?

Thank you for the reply @ThomasM125 .

 

I didn’t know I shouldn’t have been subjected to tax for PA. I assume this means I should have gotten withheld state and local taxes refunded from PA, but I didn’t get any.

 

I think this might be because I filed MI first then PA. Turbotax made me file MI one first, but I found out later that it is recommended to file non-resident state first then resident state so that credits are accurately calculated.

Do I need to amend both state returns just to change the order of the filings?

Hal_Al
Level 15

PA local income taxes for out-of-state resident?

ThomasM125
Expert Alumni

PA local income taxes for out-of-state resident?

The problem lies with your W-2 since it lists wages taxable in Pennsylvania. The best resolution to this situation would be to get a corrected W-2 form that lists no state wages for Pennsylvania and then file an amended tax return. If you aren't able to  do that, you can file an amended return for Pennsylvania and remove the wages for Pennsylvania on your W-2 entry and attach a note explaining why the income reported to Pennsylvania is not taxable there.

 

Another resolution would be to amend your Michigan return to reflect a credit for taxes paid to another state.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies