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Level 4
March 19, 2023
Question

Resident/Part Year Resident

  • March 19, 2023
  • 4 replies
  • 28 views

Hoping I can find some help here.  I have a client that got married last year so they are filing a married filing joint return.  The husband lived in PA since 2021.  The wife was a NY resident until they got married in 2022.  All of his earnings were from PA; all of her earnings were from NY.  She did not work at all after she moved to PA.  I entered her part-year resident info on the federal information worksheet.  Obviously, I have no problem with the federal return.  I even navigated NYS to only allocate the wages earned by the spouse to be picked up and taxed.  My issue is with the PA return.  It's taxing all of the spouse's wages.  I don't want to choose "Part Year Resident" because the taxpayer was a full year resident both in 2021 and 2022.  Any help/suggestions would be greatly appreciated.  Thank you.

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4 replies

dkh
Level 15
March 19, 2023

Let's see if  @PATAX  can help you.   He might be taking Heidi for a walk this morning so may have to wait for a response.

IRonMaN
Level 15
March 19, 2023

I think on Sundays he brings his Coke bottle glasses down to the car wash to get them extra clean for the week. 👓

Slava Ukraini!
PATAX
Level 12
March 19, 2023

I haven't had one like this I think in many years. I checked PA tax books and went online and there is not much information there. A colleague I believe just prepared something similar like this with PA and Ohio. I called him but he doesn't work usually on Sunday. I'll try to call him tomorrow if you can't get the answer. But I think @Skylane  may know the answer to that since there was a similar question recently. Just wait a little bit and we will help you.

BobKamman
Level 15
March 19, 2023

All I know is what I read in the instructions. 

"If you are a PA resident who does not have any PA income (loss) to report, you do not have to file a PA tax return, even if married to a person who must file a PA tax return."

"You and your spouse have the option to file separate returns. However, you and your spouse must file separate returns if: . . .

6. One of you is a PA resident and the other is not. However, you can file jointly if you both elect to file as PA residents and meet all other requirements for filing jointly."

Skylane
Intuit Community Champion
March 19, 2023

what a nice Sunday afternoon mess….

They file IT203 NY PY/NR as MFJ allocating only her income to NY (and showing dates of her residency. 
PA file MFJ and file credit for taxes paid to other jurisdictions (i forget the form number).

Check inst for IT203. The NY return will be partially affected by total family income but it should wash out claiming the COJ in PA. I don’t think she’s allowed to file NY as single.

If at first you don’t succeed…..find a workaround
BobKamman
Level 15
March 19, 2023

Why are they filing MFJ for NY?  Why not just file her MFS for NY?  And she shouldn't need a tax credit for what she is paying to NY, if she doesn't even have to file in PA.  As I said in another thread, don't let MFJ be a knee-jerk reaction for every married client.  

Skylane
Intuit Community Champion
March 19, 2023

https://www.tax.ny.gov/pdf/2022/printable-pdfs/inc/it203i-2022.pdf
page 6 the exceptions on 7 don’t apply. 

edit: looks like NY can file MFS… on pg 7 

she has to pay tax to NY. Why would you not take a credit in your home state. Should work out better.

If at first you don’t succeed…..find a workaround