Can someone help me make sense of the PA local earned income tax rules.
I moved from another state (Kentucky) to Pennsylvania at the end of July for a new job.
- Jan–June: Lived and worked in Kentucky, earned about $30k.
- July–Dec: Lived and worked in PA, earned about $30k.
During my 6 months in PA, I had two different addresses in different municipalities:
- July–Aug → Address 1 (2 months)
- Sept–Dec → Address 2 (4 months)
Now I’m filing my local EIT return, and the instructions say:
Income = (Total W-2 income ÷ 12 months) × (months at this address)
That seems to assume I lived in PA all year, but I was only a resident for 6 months.
So should I:
1. Divide my total W-2 income by 12 months (like the instructions say), or
2. Divide by 6 months (the time I actually lived in PA) when splitting between the two municipalities?
If I use 12 months, my income for each address comes out to $5k and $10k.If I use 6 months, it’s $10k and $20k which seems more accurate since I only earned $30k while living in PA.
Earned Local income tax (Pennsylvania)
byu/Ihatealmondbutter intax
Posted by Ihatealmondbutter