Re: State taxes pa

Tax Year Prior to 2020: State taxes pa

I just finished my PA state taxes on turbo tax and it comes up with 0. How can that be. Either I owe or I get a refund

posted

It possible you have some credits that zeroed it out. I would suggest printing the forms and taking a look at the forms themselves. Also, make sure your resident state is marked as PA in the Personal Info area of the software.

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If your only income reported on a PA resident income tax return is from W2 income, it is very common for your employer withheld exactly what your state income tax liability is on your income. Thus, your tax liability equals the taxes paid resulting in a zero balance. You also may have a zero balance if your income qualified you for the PA Tax Forgiven rate of 100%. See: https://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/Documents/rev-631.pdf

PA income tax law differs significantly from federal and it is not uncommon for a PA income tax return to show a zero balance.