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I am a legal resident of Pennsylvania, but also meet the "actual" residency requirements of Virginia where I work because I have an apartment there. The two states have a reciprocity agreement, but it doesn't apply to me since for tax purposes I am a resident of both. Turbo Tax wants to force me into the reciprocity agreement and I can't find a way to note that I am a full year "resident" of both states. Is there a way to do that in TurboTax?
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You can only be the resident of one state for income tax purposes.
See this LINK for more information.
That seems logical, but even if I am only a resident of Pennsylvania, I still don't qualify for the reciprocity agreement per the state of Virginia because I had an apartment there for the entire year. Per the state of Virginia guidance the reciprocity agreement applies to:
"Maryland, Pennsylvania, or West Virginia Residents who:
Since I do "maintain an abode" I don't meet the requirements. I need to somehow get Turbo Tax to pay the tax on income earned in Virginia to Virginia, and then claim a credit on the Pennsylvania state tax return for that. If I fill everything out as a Pennsylvania resident, then it wants to force me into that reciprocity agreement and have me file for a full refund from Virginia and pay the tax due to Pennsylvania.
I am also worried about trying to come up with a jerryrigged fix will cause problems because I will also need to include in the return filed with the state of Pennsylvania, a copy of my Virginia return showing the tax was paid to Virginia and that no credit on taxes paid to Pennsylvania on that income was claimed in Virginia.
How about filing as part-year resident in each state and dividing the income that way..
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