I live in DE and work in PA. My W2 shows different state wage in box 16.
For 2025, the number in box 1 matches the number in box 16 of DE portion. PA box 16 shows a higher amount than DE.
In 2024, the number in Box 1 does not match box 16 of either DE or PA.
PA shows a higher amount on box 16 than DE in the W2 for both years. Other than the W2 wage, I have some interest income that gets added to DE income.
How should I calculate the double- taxed income in order to claim the credit on taxed paid to PA? Is it the minimum of box 1 , box 16 of PA and box 16 of DE W2?
Multistate double tax amount calculation
byu/scouse_bd intax
Posted by scouse_bd
2 Comments
Would advise hiring a good CPA. You should get credit in DE for the taxes paid on the PA income. The calculation varies by state but that’s generally how it works.
Box 1 isn’t relevant for state taxes. States have different tax rules. Pa ignores traditional 401k/ira contributions for instance