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Level 2
posted Feb 27, 2023 9:39:35 AM

PA Nonresident Lists Interest as PA Taxable

I am a resident of Washington state with some Pennsylvania W2 income, so I am filing a nonresident return with Pennsylvania for 2022. I have interest income from my bank which I imported through a 1099-Int. The "Interest Income Worksheet" that Turbotax generated for Pennsylvania lists the interest amount in Box 1 "Subtotal of all interest income", box 4 "Next taxable PA interest income" and Box 13 "Total taxable PA interest income". I am not a PA resident, so I should have no taxable PA interest. Why was this interest amount imported into this worksheet as taxable PA income, and how do I fix this situation?

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1 Best answer
Expert Alumni
Feb 27, 2023 8:13:45 PM

I created a Pennsylvania return and did as you described and I did notice that the Interest Income Worksheet showed taxable interest income. However, I noticed the amount did not transfer to the tax return Form PA-40. The worksheets do not get filed with your tax return, so the return may be correct and able to be filed. You can view a summary of your state tax return to see if the income is correct by following these steps, while working on your Pennsylvania tax return:

 

  1. Click on Tax Tools in the left menu bar
  2. Click on Tools
  3. Look under Other Helpful links….
  4. Choose View Tax Summary

2 Replies
Expert Alumni
Feb 27, 2023 8:13:45 PM

I created a Pennsylvania return and did as you described and I did notice that the Interest Income Worksheet showed taxable interest income. However, I noticed the amount did not transfer to the tax return Form PA-40. The worksheets do not get filed with your tax return, so the return may be correct and able to be filed. You can view a summary of your state tax return to see if the income is correct by following these steps, while working on your Pennsylvania tax return:

 

  1. Click on Tax Tools in the left menu bar
  2. Click on Tools
  3. Look under Other Helpful links….
  4. Choose View Tax Summary

Level 2
Feb 28, 2023 9:58:33 AM

Thank you, I can confirm that Form PA-40 does not show the interest income. A bit confusing that the worksheet is filled incorrectly but PA-40 is correct, but not a big deal!