PA State Tax

[mbeer01]

This is my first year using TurboTax. The process was great and easy. Everything seemed to be what I expected for our Federal refund, but I had to pay thousands of dollars more than I've ever had before for our PA State residency tax. I'm not sure the process recognized that I'm active duty military. We requested an extension for the filing to try to figure this out. Can you help? Thank you

[DawnC]

You may need to amend your PA state return.   How do I amend my state tax return?   When you go through the PA return, you will come to a screen where you can exclude income.  On that screen, you should click on Military Income and make the necessary adjustments so that your military income is not taxed in PA.   Did you enter your DFAS w-2?  

Active duty military pay is not subject to PA personal income tax if earned by a PA resident serving full-time active duty or federal active duty for training outside the state. However, other income earned, received, or realized is taxable.   Did you file a resident PA tax return and is PA your Home of Record?  

[mbeer01]

Thank you so much! I imported my data from the federal return to do the PA return so I asked by W-2 was automatically filed. PA is our home of record

[LenaH]

As long as PA is your home of record, then you can amend your resident state return and make the necessary adjustments on the Military Income screen as described by DawnC. Once completed, the tax will be recalculated and in accordance with state law. 

@mbeer01 

[mbeer01]

Thank you again for the help. I tried to Amend the return tonight, but I can't find the "military income" screen for the Amendment. I went through every step and it didn't provide that screen as an option to select.

[PatriciaV]

In the Pennsylvania state section of TurboTax, click Update beside Income and Adjustments. On the page titled “Compensation Summary”, click Edit beside your military income.  Check the box for "Entire amount of this income is not taxable to Pennsylvania."  This will flag your military income as not taxable in Pennsylvania. 

@mbeer01