PA non taxable active military pay for resident stationed outside of PA

Forum|Forum|6 years ago
March 1, 2020
2 replies
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How do I get ProConnect to omit the non-taxable wages of a PA resident stationed outside of PA? The active military box on the Wage screen doesnt apply to PA. Any help would be greatly appreciated.

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itonewbie

Level 15

No, you don't report the income on the PA return, if your client qualifies. Reading instructions from the DOR always helps whenever you have state-related questions. See these links for the details:

https://revenue-pa.custhelp.com/app/answers/detail/a_id/266/~/should-i-report-my-active-military-pay-on-my-pa-personal-income-tax-return%3F

https://revenue-pa.custhelp.com/app/answers/detail/a_id/564/~/i-am-a-pa-resident%2C-on-military-active-duty-stationed-outside-of-pa.-how-do-i

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R

RichBKEAAuthor

Level 2

I am aware and understand that it doesnt get reported on the PA return. However my question is in regards to how to get ProConnect to exclude it from PA income, while still including it in federal. There is a box under Local Income Tax Withheld to indicate Active Duty Military. However it lists the states in which it is applicable and PA isnt one of them. I have also tried to override the compensation on the Pennsylvania Income scree, but was unsuccessful there in getting PA income to zero out.

itonewbie

Level 15

For PA, there is no specific input for active military pay. It does make sense to have an input but I suppose Intuit figured that there should be no such input since there is not a line item for that in the form instructions.

The way to overcome that would be to override state wages as $0, as you had attempted to do. The proper way to do that in PTO would be to enter -1 (yes, negative 1) on (16) State wages, if different on the same screen where you input all the W-2 info.

I have tested that myself for PA and see that this will work. It also will not trigger any critical diagnostic.

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