VA Resident Worked in PA, but tax withheld in PA W2

[acaceresr87]

Last year, I worked in PA while a resident of VA (address of VA on all W2's). I received my W2 for the two states.

I know there's an agreement between the two states, but I had PA state taxes (and Philadelphia taxes) withheld instead of VA state taxes withheld. In addition, I earned well below the VA threshold of filing requirements ($11,950) but well above the threshold for PA filing requirements ($33).

I have the same income reported for my PA W2 and my VA W2 (VA income is not $0).

I'm wondering how I go about filing state taxes.

[Vanessa A]

The agreement is only for the states, it does not apply for city or local taxes.  

For PA, you will need to file a PA non-resident return and claim $0 for your wages and leave your withholdings the same as is on the W-2.  This will give you a refund of all your withholdings from PA.

You can also contact your employer to have them stop withholding for PA and start withholding for VA. You will need to give them a completed REV-419

[Hal_Al]

See:

https://revenue-pa.custhelp.com/app/answers/detail/a_id/853/~/i-am-a-resident-of-a-reciprocal-state-....

[acaceresr87]

Do I need to file in VA, since I'm well under the VA threshold of filing requirements?

[Vanessa A]

No.  If you are a VA resident and you are under the filing threshold you do not need to file a VA return.  You only need to file the PA non-resident return to claim your refund. 

[Hal_Al]

At the link I provided, The PA Dept of Revenue says:

"You will need to file a PA-40 Income Tax Return. Be sure to indicate your residency status as "nonresident". DO NOT list your compensation on the tax return. The only figure you will enter on the return is the amount of PA state tax withheld by your employer. This same figure is entered on lines 13, 24, 29 and 30. Submit a legible photocopy of your Form W-2, and a SIGNED COPY of the resident income tax return that you filed/will file with your resident state (without the supporting forms and schedules), and a statement explaining that you were a resident of a reciprocal agreement state.

@Vanessa A  - Do You have any knowledge of whether PA is going to insist on a copy of a VA form or will they accept a statement that user isn't required to file a VA return?

[acaceresr87]

From what Vanessa said, I don't think so. But I may be wrong.

[Vanessa A]

I would assume since there is not a requirement to file a VA return, you could include the filing threshold instructions and on your statement of explanation, include that you do not need to file a return and will not be filing a return due to earning less than VA filing threshold.  

[acaceresr87]

For my Pennsylvania return (since I have to include an explanation), can I do this on Turbotax or do I have to file a paper return? Or is there a PA website for this?

[AmyC]

The TurboTax program does allow statements but not the explanation you need. You would have to print and mail.

PA allows you to file a PA return on their website after your federal has been accepted elsewhere. See myPATH, which stands for ‘my Pennsylvania Tax Hub’.

@acaceresr87 

[acaceresr87]

I may be wrong, but I believe that myPATH is only available for residents of Pennsylvania (I would be a nonresident).

[Vanessa A]

No.  You do not have to be a resident of PA to get a MyPath account, you just need to be a taxpayer or file a tax return. 

To access a tax account, you will need the following items:
 

• Valid ID number (SSN, FEIN, PATH ID , or Revenue ID); and
• One of the following:
  • A return line-item amount on the specified tax type. The return must be one of the last 5 returns in the last 2 years; or,
  • A payment amount on the specified tax type. The payment must be one of the last 5 payments in the last 2 years, excluding payments newer than 15 days; or,
  • PATH Letter ID; or,
  • Online Business Registration Confirmation Code.

[acaceresr87]

I think that's to make a myPATH account. However, you're not supposed to create a myPATH account to file for personal income taxes in PA.

I found this on their website:

You may not be able to use myPATH to file a Personal Income Tax return if you are a nonresident of Pennsylvania and: 

• You do not have a Driver's License or Photo ID issued by Pennsylvania, or
• You have never filed a return/registered a tax account with the Pennsylvania Department of Revenue.

I think I will have to file by mail.