you must send in forms w-2 with your pa tax return

[SHL93]

Hi,

I'm living in PA, and for the first 7 months of 2020, I worked in PA, but starting from November I got a job in Delaware, but due to the covid, I worked from home.

So when I file the state tax, under Any Special Pennsylvania W-2 Situations section, I choose "you earned income in another state" and "your employer withheld income tax for another state".

Then it's saying Prepare W-2 Additional Information Statement, you must send in forms w-2 with your pa tax return. 

What statement/forms I need to provide? 

Do I get refund for the withholding tax in another state?

Any help is appreciated!

[SundayInSalem · Accepted solution]

TurboTax will prepare PA Schedule W-2S for you if you say "you earned income in another state" and "your employer withheld income tax for another state." Pennsylvania wants this form and your W-2s because it does not know how much Delaware tax was withheld. You should be able to attach this as a PDF. If not, click on PA Schedule W-2S for instructions on how to fax or mail your W-2 copies. Look for HOW TO SUBMIT FORM(S) W-2, 1099-R, 1099-MISC OR OTHER DOCUMENTS.

You probably will not get back Delaware tax withheld. Delaware generally follows the “convenience of the employer rule,” meaning if your employer believes you are a Delaware employee, even if you are working from home, you have to pay Delaware tax.

You can claim a credit on your Pennsylvania tax return for tax paid to Delaware but you will have to file for both states.