How do I fill out my PA-40 to reflect half a year of income earned in Alaska while being a new Pennsylvania resident for that half a year?

by Michael J. Eby, CPA | Feb 13, 2019

I was employed in Alaska for all of 2018. In August 2018, I moved and changed residency from Alaska to Pennsylvania. It is my understanding that I am responsible to pay state personal income tax in Pennsylvania for the income earned between August and December 2018, correct? Also, how do I fill out the PA-40 to reflect just the income earned while a Pennsylvania resident?

You are correct that tax is due on income from the date your Pennsylvania residency began. The PA-40 will have a place to mark a part-year resident on the first page. Additionally, the Pennsylvania Department of Revenue provides a Q&A regarding the income tax treatment for part-year residents.

I don’t quite understand how you were employed in Alaska for all of 2018 yet moved to Pennsylvania in August. Depending how the company withheld taxes on your W-2, it might present some challenges with recognizing credits on your Pennsylvania return. You may want to meet with a tax professional to get clarification on your specific case.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Michael J. Eby, CPA, is partner with the tax services group of RKL LLP in Harrisburg, 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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