Question

State taxes to be paid

Forum|Forum|6 years ago
March 11, 2020
2 replies
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My son was an NROTC student in PA that finished school and commissioned in May and stayed in PA until July 1 when he was stationed elsewhere. We live in NC so technically while he was in PA his home residence was NC.

He received his W2 which took out PA taxes for the time he was in PA. He became a FL resident in July so no state taxes to be paid there.

My question is this. So for the state taxes he was charged through July 1, does he pay those to PA or to NC. He is filling tax forms for both states, resident NC and non-resident PA but from what I read, PA says they get the tax revenue because he "earned pay while employed there" there during this time and NC say they get it because he was an NC resident.

I

Irene2805

Prepare the PA return first then prepare the NC return. That way the figures flow properly from the PA return to the NC return and he should get a credit on the NC return for taxes paid to another state.

B

bendersnAuthor

Thanks - I actually did it the other way so will go back and try it this way

C

chris.hodgdon

This is interesting. My son is Active Duty, was stationed in Korea and then in Kansas this last year. When he got his W2 there is nothing for Kansas, the Army see's him as being in his permanent state (Texas) even while located on a base in another state. I would look further into this if I were you, I know that many states won't or cannot collect income tax (expect his permanent home state) if he's in the military.

DMarkM1

Depends on the type of income. Active duty pay earned while stationed on military orders in PA as a nonresident is not taxable to PA and a nonresident return to exclude the income and get any withholding back should be filed.

However other types of income are taxable to PA and as Irene2805 states above technically both states can tax the income in PA. Here is a link to several helpful FAQs for PA.

Generally the resident state gives a credit for that double taxation.

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B

bendersnAuthor

Thank you for the reply. When he commissioned he was considered active duty (had orders) in PA until he got stationed in FL. So his PA non-resident income would be non-taxable.

What about NC? Technically he was an out of state student in PA until he got commissioned. So he doesnt have to pay the PA tax but does he have to pay NC tax on that amount instead?