Hi I am a full year resident of PA and collected some unemployment from NY. I did the NY non resident return and was taxed on my investment income. I am filling my PA return and they are also taxing my same investment income. Is there a way to get a credit from PA on this investment
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Investment income is generally not taxable to nonresidents unless it is related to employee stock. NY unemployment received by a nonresident is taxable to NY.
If your investments are taxable to NY you can claim a credit on your PA return. Go to Credit for taxes paid to other states.
PA does not tax unemployment so you can't claim a credit for tax paid on unemployment. You'll have to manually adjust the numbers. For example, if your NY income was $10,000 and $8,000 was unemployment and $2,000 was investment income, then you would report $2,000 as income to PA for the tax credit and 20% of the NY tax based on the income percentage ($2,000/$10,000).
Learn more: New York State Tax Treatment of Stock Options, Restricted Stock, andStock Appreciation Rights Receiv...
Yes this was helpful. Do I take the credit on the income or the tax? I think it’s the income
You take credit for the tax paid in a nonresident state. Here is how the 'other state tax credit' works:
The credit for tax paid to another state on the same income will be the lesser of:
If you don't have tax in the other state, then there is not going to be a credit for that state on your resident state return.
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