Lived part year in one state and then moved to another and still work in the first state. State tax returns

[cangeline55]

I work in Delaware. In 2022 I lived in Delaware for 8 months and then moved to PA for 4 months of the year and still work in Delaware. I am not sure how to file the state tax return. Do I have to file a state return in both states?

[MayaD]

Yes, you need to file state return in both states and allocate your income. 

For PA Part-year residents use the same PA-40 that residents and nonresidents use.

Delaware does not offer a part year resident return. Part year residents can elect to file the Part-Year return on the resident or nonresident form. 

How do I file a part-year state return?

[cangeline55]

Thank you for the information!

[rvollum]

Hi there. This is almost exactly my situation - the durations are just flipped (first 4 months in DE, then moved with the final 8 months in my new home in PA), with the same job all year long in DE.

Trying to use TurboTax for this, and I'm at the state tax section now, it tells me:
"From the information you have entered into TurboTax, here is what we think your state situation looks like:
* Delaware: Part-Year Resident

* Pennsylvania: Part-Year Resident"

Does that sound right to you?

[AmyC]

Yes, a part year resident of each state but DE gets to tax all of the income since it was earned there. PA will only tax the income earned while a PA resident and give you a credit for the portion DE taxed also.

Calculate your DE tax liability first, then PA for the credit to calculate correctly.

PA and DE entered in a new dual residency agreement this year that should not affect you based on your question but does show they understand the issue you face.

Refer to PA Personal Income Tax Guide - Deductions and Credits, for additional information.

@rvollum 

[rvollum]

Thank you so much @AmyC ! This is 100% the guidance I was looking for. I got the idea that I had to do both, but I needed to know the "order of operations". Really appreciate the help and guidance.

Rob