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jjzh01
Returning Member

I am a VA resident but PA employer withheld PA state tax. How to file PA tax return amend for prior years and claim refund for future?

I am a resident of VA and fill married jointly return with my wife in VA. Because I work in PA, the reciprocal agreement state of VA, but my employer withheld PA state tax from my wages. Recently, VA taxation informs me that I couldn’t claim VA tax credit for the tax paid to PA. So, VA disallows my credit and require to pay additional tax and interest. I already make payment to VA, but does anyone could help to answer two questions? Thank you!

  1. How to file PA tax return amendment for my prior years?
  2. By July 31, 2020, my employer also withheld PA state tax from my wages. How to claim the refund on my 2020 PA state tax return for this year? 
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3 Replies

I am a VA resident but PA employer withheld PA state tax. How to file PA tax return amend for prior years and claim refund for future?

You need to file non resident PA returns to get the incorrect withholding refunded. That is why VA is not allowing the credit since you did not have to pay any PA taxes.  

 

You need to give your employer a form  REV-419 so they STOP the PA withholdings ...  

https://ttlc.intuit.com/community/state-taxes/help/which-states-have-reciprocal-agreements/00/25576

Hal_Al
Level 15

I am a VA resident but PA employer withheld PA state tax. How to file PA tax return amend for prior years and claim refund for future?

You cannot get a refund of the PA withholding, so far in 2020, until you actually file a 2020 non resident PA return, early in 2021. 

TomD8
Level 15

I am a VA resident but PA employer withheld PA state tax. How to file PA tax return amend for prior years and claim refund for future?

This PA reference explains the correct procedure you need to follow:

 https://revenue-pa.custhelp.com/app/answers/detail/a_id/853/kw/pa%20tax%20withheld%20for%20reciproca...

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