Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

My husband and I both live in DE but work in PA. I need to

know what taxes I should...
My husband and I both live in DE but work in PA. I need to know what taxes I should be paying and to whom?
Show More
Show Less
Ask Your Own Tax Question
Answered in 19 minutes by:
10/26/2008
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified

Hello vze,

 

Generally you are responsible for state taxes to the state you reside in and any state where you have earned income.

 

If you and your husband are both employed in the state of Pennsylvania, then you will both need to file a state tax return with the state of Pennsylvania and will be liable for taxes on the income you earned in that state.

 

At the same time, since you are residents of Delaware, you will file a return with the state of Delaware as well, however, you will be given credit on your Delaware return for taxes already paid to the state of Pennsylvania. This in effect will avoid double taxation of your earned income.

 

If you have other income from things such as interest, dividends or other unearned income, that income would be taxable only in the state where you are a resident.

 

 

Thank you.

 

Ask Your Own Tax Question
Customer reply replied 9 years ago
what about local or city wage taxes. Should we be having both state taxes out of are checks?

Hello again Customer,

 

I cannot comment on local taxes, as you have not given me the name of the city that you work in or the name of the city you reside in. I would need that information before I could give you an answer on the local tax issue.

 

As far as your state taxes and whether or not you should be having taxes withheld for both states, my answer would be "no". The reason for that is that if you are working in Pennsylvania, then I assume your employers are withholding Pennsylvania state taxes. At the end of the year, you will need to file a state return with both Pennsylvania and your resident state of Delaware. However, your first liability will be to the state where you actually earned your income, which is Pennsylvania. Your resident state of Delaware will then give you credit for taxes you paid to Pennsylvania, so chances are you should not end up owing any or much tax to Delaware. That being the case, there does not seem to be any reason to have Delaware taxes withheld from your checks.

 

If you have other income such as interest or dividends, then of course your liability for tax on that income would be to your resident state of Delaware, but state taxes on your actual income from employment should ultimately end up being paid to the state you work in.

 

 

Thank you.

 

Ask Your Own Tax Question
Customer reply replied 9 years ago
I work in the city of philadelphia pa and live in the city of dover de. my husband works in crumm lynne pa and lives in dover de. I don't believe he is liable for city taxes but i am not sure. I also think de has a higher state tax than pa so how can i make sure i am not going to owe money.

Hello again vze,

 

 

Out of the 3 cities you listed, Philadelphia is the only one with an earnings tax. As a non-resident of Philadelphia, but having earnings from inside the city, your tax rate there is 3.5392% and your Philadelphia employer should already be withholding that amount from your paychecks.

 

You are correct that Delaware and Pennsylvania have different tax rates. The tax rate in Pennsylvania is a flat 3.07%, while in Delaware it is based on a scale ranging from 2.2% up to 5.95% depending on your income bracket. The highest bracket of 5.95% is levied on incomes of $60,000 or more. So depending on your income, it is possible that you could owe as much as an additional 2.88% in state taxes to the state of Delaware, if your income is in the top bracket.

 

If that is the case, then you may want to ask your employer to withhold additional taxes for the state of Delaware, or at least make estimated tax payments on your own to the state to cover any additional taxes you may owe at the end of the year.

 

 

Thank you.

 

Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
Merlo and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Merlo Your Own Question
Merlo
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
9,783 Satisfied Customers
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad

Merlo is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I have a small business. I earned income back in November,
I have a small business. I earned income back in November, but didn't get the actual check until Jan. Can I book it under 2017? … read more
abci168
abci168
Principal
27 satisfied customers
I'm trying to file my G7 withholding return for 09/2017 but
I'm trying to file my G7 withholding return for 09/2017 but have no idea how to do it … read more
Patrick Mullis
Patrick Mullis
Masters
18 satisfied customers
I have a question regarding the state and local tax
I have a question regarding the state and local tax limitation passed by congress limiting the deduction to $10000. Is this final or is it still being ironed out by the powers that be? My clients are … read more
Carter McBride
Carter McBride
LLM
265 satisfied customers
My withholding exceeds my tax liability for each of the the
My withholding exceeds my tax liability for each of the the first three quarters of 2017. However, in December 2017 I received a taxable gift of $78,000 from which nothing was withheld. I know this mu… read more
abci168
abci168
Principal
27 satisfied customers
Can a parent with state, local & property taxes in excess of
Can a parent with state, local & property taxes in excess of 20k transfer his primary residence to his son for 1.00 in 2018 so the son can then itemize & benefit from the 8,600 of annual property taxe… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,808 satisfied customers
I plan to declare some foreign interest and dividends
I plan to declare some foreign interest and dividends totaling about 3000 pounds in each of the last 3 years, on some of which i suffered withholding tax at source. I have not been submitting an annua… read more
taxmanrog
taxmanrog
Master\u0027s Degree
778 satisfied customers
A 71 YEAR OLD TAXPAYER IS RETIRED (NO EARNED INCOME) AND HAS
A 71 YEAR OLD TAXPAYER IS RETIRED (NO EARNED INCOME) AND HAS A 401K WITH HIS PRIOR EMPLOYER FROM WHICH HE HAS BEGUN TO TAKE HIS MRD. HE WOULD LIKE TO TAKE THE 401K BALANCE AND MOVE IT TO A ROTH IRA. H… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,084 satisfied customers
I quit my job in October. I have an additional earned income
Hello, I quit my job in October. I have an additional earned income $15,312 to contribute to my former Roth IRA that I started when I was working. This was income earned in 2017. Is this permissible? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
SKAT the Danish tax people withdrew 27% of my dividend each
SKAT the Danish tax people withdrew 27% of my dividend each year since 2011. They are willing to refund it down to 15% but I would still eventually pay US tax on that 15% as I withdrew money from my r… read more
abci168
abci168
Principal
27 satisfied customers
Given that the current 1041 tax rate on 401(k) income is
Given that the current 1041 tax rate on 401(k) income is $3206 + 39.6% over $12,400, what will be the new tax rate and will it apply for 2017?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Recnetl;y i recieved and withholding tax bill from the state
recnetl;y i recieved and withholding tax bill from the state of ri divison of taxation fromm 1999, is there a stue of limitations on this … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
What would the federal and state tax rate percentages be for
What would the federal and state tax rate percentages be for a $7700 IRA early withdrawal in Ohio?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,808 satisfied customers
Us citizen living and working in colombia SA earned income
us citizen living and working in colombia SA earned income and unearned how do i report the interest and dividends are these tax at he same rate or can you also exclude them like the earned income … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,084 satisfied customers
Same question on the taxation of interest and dividends (on
Same question on the taxation of interest and dividends (on mutual funds) earned inside a disclaimed portion trust ... disclaimer trust . The original owner of a trust passed and the spouse declined a… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
International attorney that can help with double Taxation
International attorney that can help with double Taxation treaty between US and Germany. A US Green card holder in the year 2014 worked in Germany more than 183 days as a doctor, but less than 330 day… read more
taxmanrog
taxmanrog
Master\u0027s Degree
778 satisfied customers
What is the income tax rate if it is not withdrawn from the
Hi! What is the income tax rate if it is not withdrawn from the LLC? The owner has not withdrawn any balance from the business all the amount reinvested into the business. Thank you!… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,808 satisfied customers
Can franking credit on an Australian income tax return be
Can franking credit on an Australian income tax return be used on Form 1116 as tax paid on the franked distributions? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
I filed my taxes in 2014. I qualified for Earned income
I filed my taxes in 2014. I qualified for Earned income credit so I was suppose to get a refund. They request addition info to verify my claims which I provided and they accepted. Here it is 2017 I ha… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,808 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x