Skip to main content
June 1, 2019
Solved

State of PA does not tax GTL, do I need to manually override and enter adjusted Gross Compensation? Turbo Tax used Box 5 Medicare wages without any adjustments

  • June 1, 2019
  • 1 reply
  • 0 views

PA is only state does not tax GTL. Do I need to manually make these changes to the income imported by TurboTax since Medicare wages were used?

W-2 was MA based employer- MA state . Files as non-resident in MA and resident of PA for reciprocity

Best answer by re2boys

1.  PA and MA do not have a reciprocal agreement.  Your MA wages are taxable in both states.  However, PA will grant a tax credit if you filed a MA non-resident return and had a tax liability to MA. and paid it.

2.  With almost no exceptions, PA taxes everything.  Use of Medicare wages is proper and you should not adjust anything.

1 reply

re2boysAnswer
June 1, 2019

1.  PA and MA do not have a reciprocal agreement.  Your MA wages are taxable in both states.  However, PA will grant a tax credit if you filed a MA non-resident return and had a tax liability to MA. and paid it.

2.  With almost no exceptions, PA taxes everything.  Use of Medicare wages is proper and you should not adjust anything.