Non-Resident PA return

[VT_PA_Confused]

I live in VT (for over a decade) and I have a w-2 where taxes were withheld for PA.  The w-2 is from a walmart pennsylvania class action lawsuit payout. This is for not much money, $45 in income and and less than $2 PA taxes.  TurboTax is telling me I need to file a PA non-resident return. The information it has gathered from my federal return and populated in both state returns looks incorrect.  Specifically providing PA with VT and investment income.  As far as I know PA only needs the info from this w-2 and none of my other income.  Isn't it as simple as taxes were paid to PA on one W-2 and those taxes should be sent to VT?  At this point it feels as if it would have been easier to never cash the check.

[MaryK4]

Yes, you should have been able to input an Adjustment in the PA state tax return to remove the Investment income- you may want to go to the allocation of income section and double check this.  Unfortunately, if your total PA gross taxable income in excess of $33, even if no tax is due with your PA return you are require to file.  I would go back and remove the Investment income then see how much you owe- you may not need to file the return if you do not owe.

[VT_PA_Confused]

I figured it out in the end, after inserting a day to let my frustration to subside.  I deleted both state returns and started from scratch.  I started with VT return first then moved on to PA.  I found some exclude from PA options that I missed the first time.  It seems it is not programmed that well to take into account non resident returns.  I had to individually edit each line in the investment income to state PA tax exempt.  It would be easier if I could have selected all at once.

[Devsd]

I am having same problem. All my interest, dividend and capital gain income showing up in PA tax return from Federal return, even though I am filing PA return as a non resident. Please let me know how can I remove these incomes from PA return.

Thanks for help!!

[DawnC]

Prepare the nonresident PA first - to make sure you get credit for any tax paid to PA on your resident return.  When going through the PA nonresident return, go slowly and make sure you exclude any income not attributable to PA - verify you have the income allocated correctly before you submit your return.   There will be allocation screens as you go through the PA return.  

How to file a nonresident return - full instructions!    @Devsd

[VT_PA_Confused]

The link below explains how I feel regarding turbotax, and it's appalling with how much money Intuit makes that they can't be bothered to make a more intuitive solution.  The ROI on lobbying is greater than fixing edge cases like this one. 

https://www.turbotaxsucksass.com/ 

[Devsd]

I eventually maked all items in capital gain as non taxable in PA  return and also adjusted the amount to 0  in the interest/dividend income transferred from federal to PA, which excluded these amounts from PA income and my PA tax is calculated correctly but I just want to make sure if this is the right way. Will these items (capital gain, dividend & interest income) still shows up in PA return  flagged as non - taxable or should I just delete any forms related to these income items from PA return altogether?

[mt9094]

please please help to fix this. There is certainly an issue. I am a TX resident and has a PA rental home. My stock accounts appears on PA tax return and there is no way to delete it. All capital gain records are defaulted in PA section and I have to manually edit it one by one. It is nonsense.

[HopeS]

Since you are filing a non-resident for PA to report rental income, please follow these steps to ensure your income is allocated correctly to each State.

Once you've determined that you need to file a nonresident state return, the first thing you want to do is make sure you've filled out the Personal Info section correctly:

1. With your return open, select My Info in the left-hand menu.
2. Then, on the Personal info summary screen, scroll down to Other State Income, and select Edit.
3. Did you make money in any other states? the question, answer Yes, and make sure your nonresident state(s) are selected from the drop-down.
4. Select Continue to return to your Personal info summary.

After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.

Tip: To ensure accurate calculations, always complete the non-resident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

@mt9094 

[mt9094]

I did exact follow the instruction you provided. And texas doesn't have state tax. PA nonresident state tax. When moving to PA, two of my stock accounts are already there (no choice in the software to ignore it or select it as income in another state). Once deleted, it appears again next time I open it. And in any way. Some of my stock transaction are listed on the investment income section, and no way to delete them all. I have tried a lot of times. There is a bug in the software,

[ThomasM125]

When you go through the Pennylvania return, you will be asked about your sources of income and you will have to respond regarding each source of income if any of it is taxed in Pennsylvania:

@mt9094