Hi,

I live in PA, but my company is in MA and deducts state taxes for MA. My W2 shows MA. Now I understand that I will be filing as a non resident of MA, but what about PA? Do I still file for PA taxes as I have been a full year resident here? My employer states that I can either file a PA state tax and ask MA to return the taxes paid there or file as a non resident in MA and need not file in PA. Question is,

1. Does one file State tax because he has been living in the state or whether he has income from working in the state?
2. Do I have to file in both the states?

Please advise.

Thanks,
Suj

Suj:

Your employer is incorrect. You need to file in BOTH states. You file in MA as a non-resident and pay the appropriate tax for income earned in MA.

Then file in PA and claim the credit offered for taxes paid in another state.

If this is not easy for you to understand, you should get professional tax help! Tax professionals handle this situation all the time.

Thanks for clarifying. I will go to a Tax consultant.

Regards,
Suj



Suj:

Your employer is incorrect. You need to file in BOTH states. You file in MA as a non-resident and pay the appropriate tax for income earned in MA.

Then file in PA and claim the credit offered for taxes paid in another state.

If this is not easy for you to understand, you should get professional tax help! Tax professionals handle this situation all the time.

Glad to help!