Calling PA preparers

[Possi]

I am doing a military return. His home state of record is PA and there is no withholding. I read in TTB All States PA 3 that military income is not taxable.

Ordinarily, I would find a way to back it out. Problems, I call the state and get help. But I cannot get a line through!! argggg

My client has been paying tax every year to PA even though he has not been stationed there.

So, is it taxable?

PA Non Resident return?
How do I back the w2 out?
Do PA Sch SP Line 7?

I'm sinkin' here!

[KBTS]

For a PA resident, active duty military wages earned outside of PA are not taxable. The key is the wages must be earned outside PA; so for someone in the reserves/guard, weekend duty and even the 2 week summer training is taxable income if earned inside PA.

If the wages were all earned outside PA, I would just adjust the amount reported on the W2 and include a note with the return stating this fact and the amount you deducted. PA instructions say you need to supply a copy of the military orders and the W2 to support the exclusion, but I have just been including the statement with any returns I do and have not had PA question it for the last couple of years.

Hope this helps.

[Possi]

Other income?

I have the "blanket letter" I send with those military returns. I will use that.

Now, his wife is retired from the military and her retirement income and other income is taxable to VA, where they have lived for (I don't know how many) years.

Is his other income taxable to PA? He has interest and dividends.

Is there another phone number other than the one in TTB? I know in VA there is a preparer priority number I have posted. 804-367-9286

Thanks so much!

[KBTS]

I have found the PA DOR main number in Harrisburg is pretty much useless. If I have a question, I usually call the local DOR field office. They are much more helpful IMO. You can find a list of the offices at the PA DOR website.

If he is a PA resident, then the interest and dividends would be taxable. If your software calculates a Schedule SP for tax forgiveness, you need to include his non-taxable military pay to make it calculate correctly.

If they are living in VA and consider that their home, I do not think he should be filing a PA return. Guess you need to determine where they consider their home before doing anything with a PA return.

[fliszt]

I can't

vouch for PA, but I do military return for a Seattle Major whose "home" is Illinois. On the Illinois state return there is a box that is checked to indicate the person is in the military and therefore not taxed even though his W2 is shown as income.
Perhaps PA has a similar box?
Sorry I couldn't help you more.
Larry