My college-going son is a Virginia resident, studies in NY state and interned summer of 2019 in PA/Pittsburgh. He received a W-2 that had taxes withheld for PA and for VA.

[g4uayt]

My college-going son is a Virginia resident, studies in NY state and interned summer of 2019 in PA/Pittsburgh. He received a W-2 that had taxes withheld for PA and for VA. Since VA and PA are reciprocal states, should all the PA taxes that were withheld be refunded? 

His W-2 also had local Pittsburgh taxes withheld.  What does he need to do to get a refund for local Pittsburgh taxes?

Thanks!

[DavidD66]

Yes, all Pennsylvania state tax withheld should be refunded.  That income will have to be reported to and will be taxed by Virginia.

As for Pittsburgh, it is my understanding that the nonresident tax for Pittsburgh applies to all nonresidents, regardless of their state of domicile.

[g4uayt]

Thanks for the response. 

Once my son entered his VA residency and PA non-residency,  TurboTax did show the PA tax amount withheld as a refund.  TurboTax is asking he send in Form W-2 with the PA tax return.  It is unclear what "sending the Form W-2 with the PA tax return" implies.  He had entered the W-2 details detailing the tax withheld for both PA and VA into Turbotax - does that suffice?  Any guidance would be appreciated.

Thanks again!

[AnnetteB6]

If you filed the PA return electronically, then the W-2 should be sent electronically with the tax return unless there are specific instructions printed with your copy of the tax return showing an address where the copy of the W-2 should be mailed.  

@g4uayt

[g4uayt]

That was very helpful - Thank you!

In addition to sending the W-2 (electronically), TurboTax is asking to prepare a W-2 Additional Information Statement.  This is to explain the circumstances of his PA state return - state taxes were held in both PA and VA.  My son has stated that he is a VA resident and a PA Non-Resident and given the reciprocity between the 2 states, taxes held in PA should be refunded.  TurboTax appears to be following that logic and is showing a refund of all taxes held in PA in his PA return.  Does he need to explain this in an "Additional Information Statement" in his return?  

Thanks!

[DianeC958]

No, he does not need to file an Additional Information Statement with his return.