PA Resident - Work in Delaware - Tax Question
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Steph7152
New Member

PA Resident - Work in Delaware - Tax Question

Hello,

I work in DE but live in PA.  When I enter in the amount of my DE state taxes paid - I am only getting partial credit on the TT PA State return.  Why?

2 Replies
SteamTrain
Level 15

PA Resident - Work in Delaware - Tax Question

PA only allows a credit "Up-to" what PA would have charged for the same income.

 

Since PA has a pretty low flat rate of ~3%, and DE uses a graduated rate up-to ~6.6%, its possible that the credit is being limited to the lower PA rate.

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
TomD8
Level 15

PA Resident - Work in Delaware - Tax Question

@SteamTrain is correct.  Here is PA's rule on the "other state credit":

 

If you can claim a resident credit as described above, your credit is the lesser amount of:
--The tax due to the other state (as may be adjusted), OR

--The tax calculated using the PA classified taxable income that you earned, received or realized in the other state multiplied by the Pennsylvania tax rate of 3.07 percent (0.0307).
https://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/Documents/pa-40g-l.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

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