In article
<7d8ef5a1-9b87-419b-ba0b-a0e9ae021b20[at]v17g2000hsa.googlegroups.com> ,
rdsandy[at]gmail.com wrote:

- quote -

Your daughter will have to file a non-resident Pennsylvania state income
tax return, reporting the income from both jobs. She will likely end up
with tax due on the PA return because no PA tax was withheld on Job 2.

When she files her Delaware resident income tax return, she has to
report the income from both jobs but she can claim a credit for the tax
liability imposed by PA against the DE tax. The amount she can claim is
the amount of PA income tax withheld plus the tax due on the PA return.
She will have to attach the PA return to her DE return in order to claim
the credit.

The result is that she will not be double-taxed on both jobs.

BTW, the Job 2 employer should be withholding PA income tax because of
the lack of a reciprocal agreement between PA and DE. She should talk to
her employer about that.

--
D.F. Manno | dfmanno[at]mail.com
"In this world of sin and sorrow there is always something to be thankful
for; as for me, I rejoice that I am not a Republican." (H.L. Mencken)

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My daughter lives in Delaware.

She had 2 jobs in 2007.

Job 1 was in PA and she had PA state income tax witheld.

Job 2 was also in PA and she had DE state taxes withheld.

Am I correct in that both wages from jobs 1 & 2 are subject to PA
taxes because she derived the income from PA and that both streams of
income are subject to DE income tax because she is a resident of DE
with a credit for taxes paid to PA?

If this is correct, is the credit allowed for the Delaware return the
PA withholding taxes or the actual tax liability shown on the 2007 PA
state tax return?

Thanks for any help.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >