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PAVI3227
New Member

W2 for income backpay

When I was a teenager, about 10 years ago, I worked as a lifeguard in the summers for a shore town in New Jersey (My permanent address was in Pennsylvania). Last year the city was sued and all lifeguards got backpay for "unpaid overtime". 

 

I now live in Ohio, and obviously I didn't update my lifeguard job from 10 years ago that I no longer live my parents in PA, nor did they ever ask for an updated address. Just sent me a check for about $250 in 2024. 

 

Just got a W2 for the "income" from 2024. Taxes were withheld so I am not worried about the federal, but the state taxes taken out were for PA (like $7). I will add this income to my OH return and pay the few extra dollars associated with the "income" for OH.  

 

As far as the PA return, it says you must file a non-resident return but I don't need the $7 back. I don't really want to pay $30-$40 to submit a state tax return to PA to get a $7 refund. Also, to add a wrinkle, the actual job was in NJ, which was an exemption if the gross amount is less than $10,000 so I do not have to file in NJ for sure.

 

Question is - Do I need to file the non-resident PA return and let them keep the $7?  

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1 Reply
MindyB
Employee Tax Expert

W2 for income backpay

No, you do not have to file a Pennsylvania return, but you may want to.  Pennsylvania requires an income tax return to be filed when income is $1 or more.  Your $250 was not generated in PA, so you technically do not have a filing requirement, but PA may think you do.  They will get the payroll withholding and that may generate some questions. 

 

I would suggest filing a paper return, with the income as $0, requesting the $7 back. Here is a link to the pdf: PA-40 $7 goes on lines 24, 29, and 30.

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