I moved to a new state for grad school in August. A few questions about two state filing and income

theonewhoistaxed45
theonewhoistaxed45 Member Posts: 3 Newcomer
edited February 15 in State Filing

Hi everyone.

I moved to PA for grad school.

  1. I worked and received wages and tips for about 8 months out of the year in Missouri.
  2. I did not receive any income in PA in 2024, except for the interest generated from my bank accounts and dividends.
  3. Right now, I am filing two state returns as a part year resident for both.

My questions:

  1. For interest income, do I split the interest income based on months I was in PA? For example, if my total interest was $500 in 2024 and I lived in PA for 3.5 months, I would report $145.83 on my PA taxes?
  2. Is it the same with dividend income?
  3. Is it worth filing as a full-time resident in the MO tax return? I was there longer than 183 days.
  4. Is it worth not filing as a PA resident at all since I moved for school?

Thanks for your help

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Answers

  • TriciaD
    TriciaD FreeTaxUSA Agent Posts: 22

    Hello theonewhoistaxed45,

    Part-year and non-residents of Pennsylvania are typically taxed on all income derived from Pennsylvania sources, which generally includes earned income such as employee compensation, rental income, and business income. However, part-year and non-residents are not subject to Pennsylvania tax on ordinary dividends if these dividends are not sourced from Pennsylvania. 

    If you did not receive earned or other taxable income from Pennsylvania sources, it may not be necessary for you to file a Pennsylvania tax return. Please visit the following link to determine your filing requirements: Do I Need to File a PA Tax Return? 

    For more information about Pennsylvania taxable income, please refer to this link: Pennsylvania Taxable Income Information 

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