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