Topic: Silly Tax Mumbo-Jumbo

[jkim]

Yay taxes!  I know we've had a bunch of discussions before, so I have a question for anyone who can answer.

This year I'll have a W-2 and an 1099-MISC (and technically another 1099. But I never signed anything with them and they never even asked for my home address before I left)

The W-2 comes from PA where I file as a non-resident.  The 1099 is from NJ where I'm a resident.
Do I need to file both types of income for both states?

[ober]

Sorry... haven't done my own taxes since I married my wife and got her dad (a former controller) as a father-in-law.  And yes, that means my father-in-law knows the details of my finances... but oh well.  He's figured out some complicated shit in the past few years.

[charlie]

Seriously, though, I'm sure you don't have to pay double taxes, but whether you have to report the income on both and how I have no idea.

I assume it should all go to where you resided, but it's possible it goes to where you made the most money. Seems like it would be a common question, though.

[jkim]

Well I just thought it was stupid that when I was doing things through HR Block's online filing Pennsylvania was taxing all my income.  My understanding was that in my non-resident state, I only report income earned in that state, while I report all income to my resident state.

But to make things a little bit more confusing:

Reciprocal Compensation Agreement States
Pennsylvania has agreements with Indiana, Maryland,
New Jersey, Ohio, Virginia, and West Virginia. Generally,
under these agreements, one state will not tax a resident
of the other state on compensation that is subject to
employer withholding. These agreements apply to most
types of W-2 compensation earned while a resident of the
reciprocal compensation agreement state. It does not
apply to miscellaneous and non-employee compensation,
compensation earned while a PA resident and received
while a resident of the reciprocal compensation agreement
state or compensation paid to Ohio resident shareholder employees
with a 20 percent or greater interest in a PA S
corporation who worked or performed services in
Pennsylvania in 2009.

[Steve]

Find a local accountant who won't rape you, thats what i did. Sent in my 1099 a few weeks ago, and im looking at $3200 back....woot!