State taxes

[mstirone]

I work remotely, but my employer required me to pay taxes to my home state (Delaware) and to another state that I was "assigned " to (Pennsylvania).  I literally spent 3 days in PA. during 2023. I could not determine in Turbotax how to pay the proper tax for those 3 days.  I am initially claiming the taxes are not due that state and am receiving a full refund for those taxes paid.  I also paid local taxes to the city of Philadelphia.

My questions are, In Turbotax:

How do I pay, if required, the proper tax for the 3 days that I spent working in Pennsylvania?

How do I receive a refund for the local taxes paid to Philadelphia? Again, I spent 3 days there in 2023.

Thank you for your assistance.

Marc [removed]

[email address removed]

[phone number removed]

[DianeW777]

Let's make sure you have the correct steps to entry.

1. First you need to indicate you worked in Pennsylvania (PA) in the personal info section 'Did either of you make money in any other states?'
2. Second, be sure you entered a second line in your federal W-2 entry to include PA as well as Delaware (DE).  Simply click 'Add another State' in the W-2.  Enter only the actual PA wages and PA withholding. Repeat for the city/local tax.
3. Third, after the federal return is complete, prepare the nonresident state first (PA) before you start your resident state of DE.  This will allow TurboTax to compute your 'Other State Tax Credit'.

As far as the Philadelphia City Wage Tax it does not have an affect on your state return. Use the link to see if you qualify for a refund directly from the city as a nonresident of PA.

The credit for tax paid to another state on the same income will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state

This will help you pay the appropriate tax on the PA and DE returns.  Be sure to select the correct residency.

NOTE: If your resident state tax is a higher rate, then all of the tax paid to the nonresident state will be applied.  If the nonresident state tax withholding is at a lower rate than your resident state you will make up the difference when all the calculations are complete. In reverse, if the state withholding on your nonresident state is at a higher rate than your resident state, you do not get the difference refunded unless the withholding was more than you tax liability for that nonresident state.  Your resident state will not refund any money they never received.  

[SteamTrain]

Yeah, but apparently PA is one of the Telecommuter taxing states:

What is the convenience of the employer rule? (intuit.com)

[TomD8]

Note that PA's "convenience of the employer" rule applies only if the employer provides the employee with a physical workspace at the employer’s PA location and the employee elects to perform their work outside of PA.

How are telecommuter's wages taxed in Pennsylvania? (custhelp.com)