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New Member
posted Jun 3, 2019 5:13:27 PM

Should I exclude other state income from my PA state return?

As part of my employment, I travel to multiple clients in differing states.  My home state is Pennsylvania.  I have earned income from 3 states this year (PA, GA and MA).  My W-2 reflects the earned income for each of the 3 states separately. I believe my GA and MA state tax returns are correct, however, I have a question on the PA state return. In the PA state return, TurboTax states that the other state income will be taxed twice and later in the process the appropriate credits will be applied.   In the W-2 section of the PA return, the question is asked if the earned income in the other states is taxable and if it should be included in the PA return.  I did not check the exclude box. Later, I was asked to enter the amount of GA and MA state taxes paid. During the review, an error popped up indicating the form G/L needs to be activated.  When activated, my PA refund jumped up roughly the equivalent of my other state tax credits.  When I went back to check the W-2 income in the PA return, the income was excluded from the PA return. This seems odd to include the tax credit for income for the other 2 states but to exclude the other states earned income. 

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1 Replies
Level 9
Jun 3, 2019 5:13:29 PM

As PA is your resident state, they should be taxing all your income, regardless of where earned.

You should complete the GA and MA non-resident returns first.  If you have a tax liability for either or both of these states, then use the section in the PA interview for "taxes paid to another state"  to receive a credit for any tax liability showing on teh GA and MA returns.

You should not exclude any income from your PA income tax return.