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Level 3
February 10, 2026
Question

Pennsylvania Credit for tax paid to another state

  • February 10, 2026
  • 1 reply
  • 9 views

Taxpayer lived in NJ first seven months Made 40K, moved to PA made 20 K. W-2 shows this and both states deducted the correct taxes. However, when doing PA Taxes, they show PA income as 60k and won't let me adjust it nor will they give me credit for taxes paid to NJ because they say it is a reciprocal state. All year the taxpayer was working from home for an employer in another state.

Am I missing something? 

1 reply

Intuit Community Champion
February 10, 2026

Are you making them a part year resident in each state. You only get a credit in your resident state if the same money is taxed by both states. You first say client moved, then you say he worked from home all year ? To help you, need to have all facts

Jack1952Author
Level 3
February 11, 2026

Thanks, I did figure it out. But to answer you, the person worked from home for a company in Kansas. Moved from NJ to PA mid year and kept the same job. I had to check off that the portion of income earned while a NJ resident was non taxable in PA. Client ended with modest refunds from both states.

Thanks.