I started 2017 working in PA as a non-resident, Jan-Sep, then returned to "home" and worked in WI 9/25/17 thru the end of the year. I'd like to file separated in PA.

[dhoyt]

My PA W2 includes taxes for both PA and WI.  Although I was married the entire year, we were "separated" while I was working the job in PA.  However, to file as separated the question asks where I lived the last six months of 2017.  I was working out-of-state for 38 weeks (yeah, one week shy of qualifying for moving expenses) but finished the year in Wisconsin.  Can I still file as separated and get most of the taxes paid in PA back?

[DianeW · Accepted solution]

The Pennsylvania (PA) return can be filed separately regardless of the filing status on the federal return.  Either way you file (part year resident or nonresident), the PA tax will be the same because they have a flat rate of tax.  And the full year will be considered for any type of tax forgiveness.

The state returns don't give you the option to enter dates in the middle of the year, so use a date that represents the number of months you worked in PA.  In your case you worked in PA for 9.5 months.  

You will not be able to answer "yes" that you and your spouse lived apart the last 6 months of the year. (Click the image attached to enlarge and view).  

Because you were living in Wisconsin (WI) the last part of the year, you were living there during part of the last six months.

• PA Eligibility Income for Tax Forgiveness

If you need more assistance please add a comment.

(Edited:  01.24.2018 | 6:30 AM)

[dhoyt]

I think what I was looking for was the tax forgiveness portion and it sounds like I can't use that because I wasn't living in PA at the end of the year.  Does that sound right?  It's the difference between owing $17 or receiving a $1,400 refund.  I would LOVE the refund but I'm not willing to lie to get it.

[DianeW]

@dhoyt The tax forgiveness will look at the whole year and income from both you and your spouse if applicable. If you have dependents it's possible for some forgiveness but not likely you would receive $1,400.  I added a link above for the eligibility income tables.

[dhoyt]

My PA income is less than the amount listed for 100% forgiveness but I've been having trouble entering my Wisconsin income as "additional untaxed income".  TT keeps doubling the amount and it bumps me up above the limit.  I don't know why my WI income is being considered for PA taxes.  Should I just enter zero for that field and only report my PA income on the PA state tax form?

[DianeW]

No, PA requires the annual income to determine tax forgiveness.  Check the W2 entry to be sure you have only WI income on one line and PA income on a second line in the federal section.

[dhoyt]

Great, that makes sense.  Thank you for helping me understand this!  🙂

[DianeW]

@dhoyt Your welcome!