Employer put my W2 through PA instead of DE, what are my next steps?

[padkins35]

Hey, people who are much better at math than I am!

I worked for the Census Bureau in 2020.  I got my W2's.  I got 2 of them. It took me a bit to figure out  but eventually I got that one was DE and one was PA.  While I was working on submitting my taxes yesterday, I contacted my Census Boss for confirmation.  They had someone from the office call me, and say "Wait, that's not how those should read!  Those should strictly be DE, not PA and Philly!"  Which means I need to fix my submission.  But I'm not sure how.  My state returns haven't gone through yet.  Even if I was able to stop them, how do I put the correct data in?  I mean obviously, don't put the wrong data in again, but what is the right number?  Do I contact Pennsylvania and Philly and ask for correction / money back?  Or will that straighten out automatically when my DE return doesn't go through?

Help!

[ErnieS0]

Things will not straighten out automatically with the filing of the Delaware return. If you have a W-2 with Pennsylvania and Philadelphia tax withheld, it means those payments were sent to Harrisburg and Philadelphia. Usually the employer can't get those back. You'll have to file a PA tax return and possibly a Philly wage refund petition.

I don't quite understand your situation. Do both your W-2s show your total federal income and different state amounts (one for DE and one for PA)? Or are they split? For example, do both W-2s show $1,000 in federal income and ~$1,000 in state/city income or do you have $500 on one and $500 on the other?

If your W-2s have duplicate federal wages, you can file a nonresident PA return and put down $0 wages to get your PA withholding back. Submit a legible photocopy of your two Form W-2s, and a SIGNED COPY of the Delaware return that you filed/will file (without the supporting forms and schedules), and a statement explaining the U.S. Census made a mistake.

If your wages are split, you can do the same, but you should verify that you are reporting all your Census income on the DE return.

For Philadelphia, the Census can file a mass refund petition if this is a big problem, but you will probably have to file an individual wage refund petition. This has to be signed by your employer (the Census).

2020 Wage Tax refund petition (salaried employees)

[padkins35]

Hi, sorry it's been a bit.

Both W2's show the same amount.

Re: signed form, what if I finished it electronically here on turbotax?

Any idea what adjustments need to be made to the DE tax form with new data?  AKA what do I need to do before I print and sign the DE return, that I then include a copy of?  Will the one previously prepared referencing the PA tax be appropriate?

P

[AmyC]

If the issuer agreed that the forms were wrong, are they sending out corrected forms?

If not, then you will need to amend returns after everything is settled from the original filing. You will want a full refund from PA.

Since DE has already taxed the money, you don't need to file an amended return with them. If PA refuses to give you a credit, then you can file for a credit with DE based on tax paid to PA.

Once your original return is accepted and the finances are settled, you can file an amended return. 

• Save a copy of the original return before doing an amended return. See: 
  • how to file an amended return.
  • I need to amend my state return.
  • Can I e-file my amended state return?
• Track amended return status online. Taxpayers can track the status of their amended tax return in English and Spanish using Where’s My Amended Return?  Amended returns take up to 16 weeks to process and up to three weeks from the date of mailing to show up in the system.

[padkins35]

They said that they would adjust for this year (2021), but they couldn't resubmit the data on their end for 2020.

Everything is currently accepted.  I just send PA's the way the previous poster suggested (it might have been in their link)?

I'm not understanding the statement "Since DE has already taxed money".

Original return has been accepted.

I'm not clear on my next steps

- 1 - send in return to PA requesting money back

- 2 - ??? send an amended return to DE once PA clears?

- 3 - Do I need to do anything with my federal return?
- 4 - Would a local tax prep place be able to resolve this efficiently?

[KrisD15]

Let's help by getting some clarity first. 

You received two W-2 's from the Census Bureau with the same amount, lets say 1,000. Does that mean you made 1,000 twice? OR that both W-2 's are reporting the SAME 1,000? 

I'm guessing you did census work in both Delaware and Pennsylvania? Or was this work you did for the Census Bureau remotely? 

If Pennsylvania / Philadelphia tax was withheld and shouldn't have been, you can file a Pennsylvania and Philadelphia return to get the tax refunded. 

It is unclear id the proper DE tax was withheld. 

It is too late for the employer to change how the state tax was withheld and paid, not too late for an employer to issue a CORRECTED W-2.

Were your W-2's REPORTED correctly? 

Do they show what really transpired? 

Did you earn both incomes? 

Were each incomes taxed by different states? 

Should both incomes been taxed by the same state? 

When you filed the Delaware state tax return, did you pay tax on both (all) income? 

[padkins35]

I've been putting this off.  Apologies.

The Same amount of money.  Presumably the same amount taxed in both states.

I think Remotely in DE is the best answer to your question.  I worked in DE, but they sent me to PA, MD, and UT at points.

I think I'm clear on submission of PA Tax return.  Need to print out and mail, but I'm just putting Non-resident and the amount withheld, right?

Yes, that's what I'm concerned about.  From the conversation with the Census people, DE was not properly paid, because PA took priority.  A small amount was paid, but on the basis that PA got theirs.

Pretty sure the W-2 is correct.  I earned the income, the data for which was provided on both W-2's.

I sent in the DE tax return on the information I had, that I had paid out to PA.  I have not yet submitted a PA return.

Useful?

[DanielV01]

@padkins35  I've been reading the entire thread here, but I don't see where you mentioned what state you live in, which matters because your resident state may tax your income no matter where you made it.  In addition, if remote work was involved (telecommuting, for example), both Delaware and Pennsylvania have laws that treats the teleworker working from outside the state as if they were physically working inside of the state.  You've provided a great deal of detail, but your mention of other states (MD and UT) brings up the question.

[padkins35]

I am a resident of Delaware.  It wasn't telecommuting.  I was working for the US Census and visiting addresses in those states.

For the record, my existing return (unamended) was accepted by DE.