PA non-resident question

[Barb132130]

I have a client who moved to NY from PA in 2010. She was a full year NY resident in 2011. She received a W2 for severence pay from a company she worked for while living in PA, which lists PA as the state and has PA withholding. I am preparing a non-resident PA return for her, but am unsure as to whether this income is truly taxable to PA, or if I should just file to get a refund of withholding. Any advice would be appreciated.

[Peachie]

Does your software

I have a client who moved to NY from PA in 2010. She was a full year NY resident in 2011. She received a W2 for severence pay from a company she worked for while living in PA, which lists PA as the state and has PA withholding. I am preparing a non-resident PA return for her, but am unsure as to whether this income is truly taxable to PA, or if I should just file to get a refund of withholding. Any advice would be appreciated.

not separate the two states? PA will only tax PA income. NY will probably tax it all and allow a credit for PA taxes paid-if there are any.

Peachie

[Gary2]

I have a client who moved to NY from PA in 2010. She was a full year NY resident in 2011. She received a W2 for severence pay from a company she worked for while living in PA, which lists PA as the state and has PA withholding. I am preparing a non-resident PA return for her, but am unsure as to whether this income is truly taxable to PA, or if I should just file to get a refund of withholding. Any advice would be appreciated.

When she worked for them, was the work done in PA? If so, I believe PA considers it PA source income, even though paid after leaving employment.

[BP.]

severance taxable

From PA DOR FAQs page:

Is my severance pay taxable even if I moved to a different state?

Severance payments received from services that were performed in PA would be taxable to PA even if you are no longer a PA resident with the exception if you move to a reciprocal state.