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?

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.