worked in two states (TX and PA), for two different employers and also for a third employer as a “self-employed worker”

[ashiqur1912]

Hello,

As of now, this year I worked in two states (TX and PA), for two different employers and also for a third employer as a “self-employed worker”. I was wondering if you could please check out my details below and advise on what my tax filing would look like for the year.

Beginning 2023, I was living in Texas and was employed with a Texas employer through January 31. I relocated to Pennsylvania at the end of January and began employment with a Pennsylvania employer on Jan 30, 2023 and I am still employed with them. I recently accepted an offer with an employer based in New Hampshire which is going to be my supplementary employment beginning next month. However, I will continue to live in Pennsylvania since the supplementary job is a completely online-based part-time employment and that the Pennsylvania employer is still my primary employer. My supplementary job doesn’t start until January 2024, however, there is a paid training portion of the employment that I will need to go through the next month when I begin with them. So, I will look at some sort of earning since it’s a paid training. Additionally, I have been occasionally working on another online platform as a self-employed worker/independent contractor since October. Last year I filed my tax as “married filing jointly” and I wish to do the same this year.

I would appreciate your advice and time. Thank you!

[Alicia65 · Accepted solution]

You should continue to file Married filing jointly on your Federal Return. If you lived in Texas for the month of January because there is not a state tax in Texas you do not need to worry about a state return for Texas. You moved to Pennsylvania and still reside. So for 2023 you will be a part year resident of Pa.

 Part-year residents are subject to PA personal income tax on all income earned, received and realized from all sources when residents of PA. That means if you have paid training from New Hampshire you will include it on your Pa return. Usually you can take a credit from taxes paid to another state. New Hampshire does not have a state income tax.

[ashiqur1912]

Thank you, Alicia. Just wondering how does "credit from taxes paid to another state" work and if I can claim this credit right when I file my federal return.

[Alicia65 · Accepted solution]

You would file the credit when you file your taxes. In your case though your W2 from Texas should not show anything in state withholding. The money you earned while living in Texas also should not be taxed to Pennsylvania. While filing your 2023 return TurboTax will ask where you were living on 12/31/2023 which will be Pa. It will also ask if you lived or made money in another state. Both Texas and New Hampshire do not have a state income tax so there will be no credit from another state to deduct. Any income from New Hampshire will be claimed on your Pa return. You can ask the New Hampshire employer if they can take Pa state taxes out. If they can it will save you from owing 3.07% of that wage at tax time.