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manojkapri
New Member

Tax deducted for a state where i never lived.

Hello Everyone, 

 

I need some Help. I moved to a new employer last year in December and my work location is CT. 

My employer however is based out of PA.

 

I have never worked out of PA but still for first few months i.e. from Jan to March, i was deducted state taxes for PA. It was only after my emails that they fixed this issue. 

 

Only question that i have is if i will receive two different W2 this year one each for CT and PA to file my taxes or if it will be just one with federal and 2 states taxes on it. Will i be able to get a 100% refund on that PA taxes ?

 

Thanks in advance.

2 Replies
DoninGA
Level 15

Tax deducted for a state where i never lived.

Your W-2 should have both CT and PA taxes withheld shown on Lines 15, 16 and 17.

You will need to file a PA nonresident tax return to get the taxes withheld refunded to you.  In the My Info section you will need to indicate that you earned money in another state, indicating PA as that state.

In the state section of the TurboTax program you will complete the nonresident PA state tax return before completing the CT state income tax return.

Hal_Al
Level 15

Tax deducted for a state where i never lived.

 The general rule is you only pay PA tax on income you earned while physically present in PA. However, PA has a telecommuter rule.  If you work outside the state as a job requirement, you are only subject to PA State income tax on the days you work in PA. But if you work outside PA for your own convenience, you are subject to PA income tax on all your salary income. NY, Nebraska, Delaware and New Jersey have the same rule. For guidance see: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html

 

So, it kind of depends on what "my work location is CT" means. If it's your employer's facility, you don't owe PA tax. If it's your home, you probably do.  CT will give you a credit, or partial credit for any tax you pay PA

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