Multistate double tax amount calculation

scouse_s
scouse_s Member Posts: 8 Level 2
in State Filing

I live in DE and work in PA. My W2 shows different state wage in box 16.

For 2025, the number in box 1 matches the number in box 16 of DE portion. PA box 16 shows a higher amount than DE. 

In 2024, the number in Box 1 does not match box 16 of either DE or PA.

PA shows a higher amount on box 16 than DE in the W2 for both years. Other than the W2 age, I have some interest income that gets added to DE income.

How should I calculate the double- taxed income in order to claim the credit on taxed paid to PA? Is it the minimum of box 1 , box 16 of PA and box 16 of DE W2? 

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Answers

  • JericaG
    JericaG FreeTaxUSA Agent Posts: 4 image
    Hello, scouse_s,

    You are correct that you would use the smaller number between your two box 16s on your W2.

    You are only eligible for a credit on the amount of income that was taxed in both states.

    You are only being double taxed in DE on the income from your W2 reportable to DE. So yes this would be the correct number to use for calculation of the credit for taxes paid to another state. The amount of income being included in both places.

    Your interest income does not factor into this calculation since it is only taxable in DE, your resident state.

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