Scenario: Reporting income earned outside of the U.S. on a joint return

Dec 13, 2016
Q:

How do you amend a PA-40 in the following circumstances? H & W file a joint personal income tax return, and erroneously report income of W which was earned outside the U.S. W has not set foot in the U.S. since Jan. 8, 2008 and has been a bona fied  resident of Singapore since that date. H & W want to file an amended return to eliminate that income. Should the amended return be filed as a separate return for H?

A:

Additional information should be supplied for the department to provide an accurate answer.  However, if the question is trying to determine if a refund can be obtained in such a situation and how to file an amended return to obtain that refund, we offer the following as our answer: Because the issue involves multiple tax years - one of which the statute of limitations for filing an appeal may expire on before the department reviews and provides a notice to the taxpayer on if an amended return refund were denied, the matter is better resolved by filing a Petition for Refund (REV-65) for the open tax years. If the spouse can prove that there is no intent to return to Pennsylvania, they should file a petition for refund to claim the spouse is a not a resident of Pa. Going forward, the taxpayer would then file his return in Pennsylvania as married filing separately.

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