As an Ohio resident and Pennsylvania employee, what will happen to the taxes mistakenly withheld for Pennsylvania?

by Susan E. S. Howe, CPA | Oct 25, 2018
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I live in Ohio but work in Pennsylvania. My employer started to withhold Pennsylvania state taxes. When I switch it to having them withhold Ohio, what will happen to the hundreds of dollars already withheld for Pennsylvania?

The only way to recover tax mistakenly withheld in Pennsylvania is to file a PA-40 early next year, attaching the W-2 with the withholding amount and including a statement that you are an Ohio resident and the employer mistakenly withheld Pennsylvania tax. Report zero wages on the PA-40, and indicate that you are a nonresident.

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Answered by: Susan E. S. Howe, CPA, is principal of Howe Advisory in Strafford, Pa.

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