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New Member
posted Jun 6, 2019 1:29:58 AM

Earned income in another state

I moved to PA from NH in November 2016. I entered two W-2s, one from my time in NH and one from PA. In the PA state tax section, I entered the out-of-state income when prompted in order to get a PA tax refund. Now TurboTax is asking me if I have "Any Special Pennsylvania W-2 Situations?" including "earned income in another state"--but I am unclear if this means income during the time I was a resident of PA, or during all of 2016.

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1 Best answer
New Member
Jun 6, 2019 1:30:00 AM

When you change your residence from one state to another you file two Part-year resident tax returns.

You only report the income and withholding associated with each state on that state's return. 

In your case, since NH doesn't tax wages you only need to file a PA Part-year resident return.

Do not report any of your NH compensation on your PA return.

  • State Taxes > Your State Returns > Status of your state returns > PA > Select > Edit
  • Your 2016 PA Return > Select > Continue
  • You've Finished Your PA Return > Income and Adjustments > Select > Update
  • Compensation Summary > NH W-2 > Select > Edit
  • Select > Entire amount of this income is not taxable in PA
  • This Item Not Taxable in Pennsylvania > Select > Continue

If you come across any other questions about including NH income on your PA return, the answer is no.

5 Replies
New Member
Jun 6, 2019 1:30:00 AM

When you change your residence from one state to another you file two Part-year resident tax returns.

You only report the income and withholding associated with each state on that state's return. 

In your case, since NH doesn't tax wages you only need to file a PA Part-year resident return.

Do not report any of your NH compensation on your PA return.

  • State Taxes > Your State Returns > Status of your state returns > PA > Select > Edit
  • Your 2016 PA Return > Select > Continue
  • You've Finished Your PA Return > Income and Adjustments > Select > Update
  • Compensation Summary > NH W-2 > Select > Edit
  • Select > Entire amount of this income is not taxable in PA
  • This Item Not Taxable in Pennsylvania > Select > Continue

If you come across any other questions about including NH income on your PA return, the answer is no.

Returning Member
Feb 5, 2021 7:55:43 AM

I have income earned in the state of Florida. I would like a form where I can report this income and deduct expenses related to this income

Returning Member
Feb 5, 2021 7:58:35 AM

I received form 1099C for debt cancellation in Florida. Can I deduct legal expenses related to this income?

Level 1
Apr 11, 2021 8:08:00 AM
Employee Tax Expert
Apr 11, 2021 8:51:40 AM

Legal expenses used to be allowed as a miscellaneous deduction and with a combined total of other miscellaneous deductions that exceeded 2% of adjusted gross income (AGI).  At this time (2018-2025) these expenses are not allowed as a deduction.

 

When the Tax Cuts and Jobs Act (TCJA) was passed these deductions were eliminated with the exception of certain categories of employment.