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Level 2
posted May 28, 2025 9:27:55 AM

Setting the correct W4 deductions for unique situation (see below)

Both of my jobs are based out of a state that I don't live in...My wife and I live in DE but both companies that I work for are based out of PA. Because I file jointly with my wife, I have to file DE taxes because her job is DE.

 

How can I put extra money aside to pay DE taxes (pay DE taxes ahead so I don't get caught owing DE taxes at the end of the year). I don't want additional taken out of my wife's pay, I'd rather have additional taken out of my PA pay. Is this possible, if so how? Thanks

0 3 1575
3 Replies
Employee Tax Expert
May 28, 2025 9:50:31 AM

Delaware has its own Form W-4 that you can use to withhold extra Delaware taxes, Form DE-W4.  

Level 2
May 28, 2025 9:57:30 AM

But my jobs are in PA, so would I file a DE W-4 with PA job/s? Thanks

Employee Tax Expert
May 28, 2025 10:10:46 AM

No, you would not file a DE W-4 with PA.  You will get credit on your DE return for taxes paid on the same income in PA, but it's often not a dollar for dollar credit. 

 

Essentially, PA has a convenience of the employer rule.  If a nonresident earns income from PA sources and the income is earned for the convenience of the employer, then the PA income would only be taxed in Delaware.  But if the wages from PA sources is for the convenience of the employee, then the employee needs to file a nonresident PA tax return for those wages and claim a credit on the DE return for those taxes paid in PA on their resident DE return.  Here is an FAQ link on filing a nonresident return for an out-of-state employer

 

Since you don't want to have DE tax withheld from your wife's paycheck, the simplest option is to make DE estimated tax payments instead.  You would put the dates and amounts of payments on your DE return and any excess would be refunded.