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

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.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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