-I lived in MI for the first 1-2 months of the year of 2023. I worked remotely for an employer in PA.
-I relocated to PA and continued to work for the same PA employer for the rest of the year.
-So I filed as part-year resident for both states. (I'm currently a PA resident)
For PA state filing, on "Any Special Pennsylvania W-2 Situations?" page,
"You earned income in another state" was auto-selected for me. However, I did not earn income in another state while living in PA. I earned PA-sourced income while living in MI, before moving to PA.
I wasn't sure if this statement is referring to the entire year of 2023, and not just the duration I lived in PA.
I talked to turbotax representative, who told me to continue with this selection and select "Your employer withheld income tax for another state" as well.
After selecting those two items, the next page said "You must send in Forms W-2 with your PA tax return. Be sure to explain any of the circumstances listed on the previous screen." I could either skip or write Additional Information Statement. I skipped the statement since I'm e-filing.
1. I wanted to confirm if selecting both "You earned income in another state" and "Your employer withheld income tax for another state" was correct in my PA filing. If not, do I need to amend the PA state return?
2. Do I need to mail my W-2 and W-2c to the PA Department of Revenue?
3. If so, do I just tear the PA State portion of the W2 or the whole W2 page? Can I mail a photocopy instead of the original W2 form?
1. Correct. PA is taxing the full year of income since it was earned there. MI is taxing the first two months since you lived there. PA should give you a credit against the double taxed income. You get credit for the lower state tax on the lowest taxable amount.
2. No, you don't need to mail anything at this time.
3. If PA does request additional information regarding your return, a photocopy is always the best idea since all paperwork can be lost.