PA: "Prepare W-2 Additional Information Statement"

[Melissus]

Background: I'm filing part-year state tax returns since I moved from PA to CA. I had no wage income in PA either before or after the move. I did have one source of wage income in CA after residency was established in CA with a corresponding W-2 form.

When doing the PA part-year return, Turbotax comes up with a screen: "Prepare W-2 Additional Information Statement: You must send in Forms W-2 with your PA tax return. Be sure to explain the circumstances listed on the previous screen [which was "You earned income in another state"]. You can use an Additional Information Statement to enter this information"

But Turbotax proves no guidance on the additional information statement (form or schedule to which it relates, as well as the actual statement information to include). It looks to me like the relevant schedule is Schedule W-2S Section I (Federal Forms W-2); however Turbotax has the box checked to exclude section I of Schedule W-2S, and no information is filled in Section I. 

So my questions:

1. Should I be filling out Schedule W-2S Section I with the W-2 information from the CA job? (per the instructions to the schedule: "PA-40 Schedule W-2S must be completed and included with an originally filed PA-40, Personal Income Tax Return, for any taxpayer(s) reporting gross compensation on Line 1a of the PA-40." I am not reporting any gross compensation on 1a of the PA-40).

2. Do I need to fill out an Additional Information statement and, if so, what  do I put in for "form or schedule to which it relates" and "statement information"?

3. Do I need to include a copy of the W-2 for the CA job with my taxes?

[ReginaM]

Based on the information you provided, you do not have a filing requirement for the State of Pennsylvania.  According to the State of Pennsylvania, 

Since you did  not have any State of Pennsylvania Income, you do not have a filing requirement.  See Pennsylvania Filing Requirements for more information.

[Melissus]

ReginaM—thanks for your reply but you are wrong. The issue for which I have the question involves wage income, but I do have other sources of income (interest, etc.) which are taxable in PA for the part year, hence the need to file. (Though I might note I have nothing that falls under Section II of the W-2S).

[JohnB5677]

Did you acquire any income from any source while you lived in PA..  Based on what you've said, you did not.  You said all of your income was earned from CA while in CA.  I agree with ReginaM that you do not have to file a PA tax return.  

[Melissus]

Yes, I did, and this was made clear in my response to ReginaM. All wage income was earned from CA while in CA. However I had interest income that was earned while in PA—and I had paid estimated tax to PA—hence the need (including as the Turbotax software sees it) to file a part-year return for PA. My question pertains to the odd bit I get in the Turbotax software when it does the part-year return in PA. It seems to me that, precisely because I am not reporting any wage income in my PA return, that the W-2S does not need to be included (Turbotax too is leaving it out) but hence also there should be no additional information statement included, unlike what the Turbotax software is suggesting.

[DMarkM1 · Accepted solution]

The short answer is:  No.  As long as the interest income that belongs in PA is on the return and no W2 income is PA sourced (not in W2 Box 16) then you have no W2S attachment inputs.  See this link for when an additional statement would be required.   

[yufancheng326]

What if I had PA income? As a nonresident, under this circumstance, do I have to list w-2 of the work I did out of PA?

[JotikaT2]

It depends.

Pennsylvania requires that nonresidents file an income tax return if they have PA gross taxable income in excess of $33.

If your W-2 income from PA sources exceeded this amount, you would be required to file a nonresident PA return.

PA filing requirements