Is income earned in a foreign country taxable in my state, Pennsylvania?

[IreneS · Accepted solution]

Yes.  According to the PA Department of Revenue website:

A tax treaty between the U.S. Government and a foreign country has no effect on Pennsylvania tax law. If you are domiciled in, and a citizen of a foreign country, but maintained a permanent abode in Pennsylvania and spent a total of 183 days or more in Pennsylvania, you are considered to be a Pennsylvania resident for tax purposes.

As a resident of Pennsylvania your income from all sources inside and outside of Pennsylvania is taxable and reportable.

If you did not maintain a permanent abode in Pennsylvania or spent less than 183 days in Pennsylvania only your income from a Pennsylvania source is taxable and reportable.

[journeyman55]

Filing for 2020: Turbotax did not ask whether I was present in PA for 183 days or whether I had a permanent abode. They assumed "YES" to both questions and taxed me for foreign earned income I should be exempt from.

Where do I announce that I did not meet necessary conditions to be taxed on foreign earned income by PA?

[ErnieS0]

@journeyman55 Are you a Pennsylvania resident? Check your State of Residence in My Info in TurboTax Online. If it is Pennsylvania, change it to Foreign or U.S. possession. Then add Pennsylvania to Other State Income at the bottom.

In the Pennsylvania section, About your Pennsylvania return should show as nonresident. Otherwise click Change Residency.