Who is Eligible for Nonwithholding? You may be entitled to nonwithholding of PA personal income tax if you incurred no liability for income tax the preceding tax year and/or you anticipate that you will incur no liability for income tax during the current tax year, according to the Special Tax Provisions of section 304 of the Tax Reform Code, the Servicemember Civil Relief Act (SCRA) or as a resident of the reciprocal state of Indiana,
Maryland, New Jersey, Ohio, Virginia or West Virginia and your employer agrees to withhold
the income tax from that state
employee must provide employer with form REV - 419
THE EMPLOYER DOESN'T NEED TO AGREE TO WITHHOLD FOR OH.
A resident of one of these reciprocal states whose
employer withheld PA income tax must file Form
PA-40 reflecting no compensation on Line 1a and
the PA tax withheld on Line 13. In addition, a signed
copy of the other state’s resident income tax return
(without any supporting documents) along with a
copy of the actual W-2 and a statement that the taxpayer was a resident of a reciprocal state must be
submitted.
