Hi, I used to work for a company in Philadelphia remotely, while I resided in northern PA. Now to improve my learning curve, I have accepted a temporary part-time research position in KY. I still do my remote job full-time with my previous company in PA. But I physically moved to KY and renting an apartment here, I work a few hours with the research here. Now, what all taxes am I responsible for in PA and KY? also as I moved mid-year what would be my responsibility in PA. To complicate things I and my husband have our own house still in PA and he still resides there. So want to know what kind of taxes I should be looking at? After researching looks like it is a lot and has to pay at multiple places.
Since your domicile (your permanent home) remains in PA, ALL your income is taxable by PA, regardless of where you earn it.
Since you are in KY temporarily, your tax obligation to KY will depend on the number of days you reside in KY during the tax year. If you reside in KY more than 183 days during the tax year, KY considers you a resident, and ALL your income would also be taxable by KY. If you reside in KY 183 or fewer days, KY can tax you as a non-resident, but only on your KY-source income. Your KY-source income is the income you earn from work actually (physically) performed in KY (even if it is work you do remotely for a PA company).
You'll be able to take a credit on your PA return for taxes paid to out-of-state jurisdictions, so you won't be double-taxed.
Thanks for answering promptly. technically I started working in KY since June first week, as I am a part-time researcher I work on and off with most days gone to my home in PA for more than 8-10 days a month. so should I change my address with my primary employer (my remote work location Job from PA)? or just leave it as is and then calculate the taxes based on just the number of work days in KY? or will that be considered illegal and I should tell my company that I have been working majority days living in KY and a few days in PA? it is confusion. Please help.
As I explained in my first response, you definitely need to keep track of the number of days you live in KY. That will determine whether KY taxes you as a resident or as a non-resident - which in turn will determine if KY can tax all your income, or just the portion you earned in KY..
Your entire income will be taxed by PA; all or part will also be taxed by KY.
You definitely want your employer to withhold PA taxes. Maybe your employer will also withhold KY taxes. If not, you may want to consider making estimated tax payments to KY.
Your state income tax obligations aren't determined by your mailing address. They're determined by your state of domicile, and by where you actually live and work.