Income earned from another state

[Steve M]

My client lives in Pa but was sent to Washington State (no state income tax)to work most of the year. He never lived in Wa., but flew back and forth each week from home. His W-2 shows all of his income is from Pa. He is trying to convince me that he doesn't have to pay state income tax to Pa because the income was earned in Wa., and since Wa. has no state income tax, he doesn't have to pay any state taxes. My experience has been that your resident state may give you a credit for taxes paid to another state while a resident of your home state, but they want their pound of meat. Anyone have any input, especially as it pertains to Pa? Your thoughts are appreciated.

Steve M

[mcb39]

Quickfinders All States; PP PA-1 Pennsylvania:

Residents are subject to Pennsylvania personal income tax on their entire incomes. They may qualify for credits against tax paid to other states on income earned outside of of Pennsylvania.

[Steve M]

Quickfinders All States; PP PA-1 Pennsylvania:

Residents are subject to Pennsylvania personal income tax on their entire incomes. They may qualify for credits against tax paid to other states on income earned outside of of Pennsylvania.

Thanks Marilyn, that makes a lot of sense. Appreciate the response.

Steve M

[joelgilb]

Ask him where he learned tax law

Marilyn is correct he has to pay PA tax if he is a PA resident!

[kcjenkins]

And tell him how LUCKY he is that the company did hold out PA tax, since he would have gotten no offset for taxes paid to another state. I just had a guy who had to write a check to the state for over $3K because he worked half a year, at a very lucrative wage, in TX, and the company held out no state tax on it. I warned him to have the company hold out AT tax any time he works in TX or TN in future.