Do You Have to Pay Pennsylvania State Taxes on Foreign Income?

do-you-have-to-pay-Pennsylvania-state-taxes-on-foreign-earned-income.png — Pennsylvania treatment of foreign income

Pennsylvania Allows You To Be Domiciled But Not Pay State Income Tax

If you are domiciled in Pennsylvania, you will be considered a nonresident if you meet all 3 of the following conditions:

1. You did not maintain a permanent abode in Pennsylvania for yourself or your family.

2. You did not maintain a permanent abode outside Pennsylvania for the entire year.

3. You did not spend more than 30 days of the year in Pennsylvania.

If the above 3 conditions are met, you are taxed only on your income from Pennsylvania sources.

If you are a Foreign Service Officer who is resident in Pennsylvania, you will still need to file a resident tax return as Pennsylvania does not consider government quarters overseas to be "a permanent place of abode elsewhere."

When you are ready to have your return prepared please send me an email to get the process started.

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Available for all taxpayers in every state and all Expatriates living abroad.

CONTACT NICHOLAS HARTNEY, EA

nick@genesistaxconsultants.com

Areas of Practice

expat tax preparation

Foreign earned income and housing exclusions for both federal and state income tax returns. Foreign bank account reporting (FBARs), Statement of Specified Foreign Financial Assets, Tax Treaties, Application for IRS Individual Taxpayer Identification Number,etc.

business tax debt representation

We will file a power of attorney with the IRS and State Taxing Authority to negotiate a hold on all enforcement action such as bank and account receivable levies while we work on an appropriate resolution including Installment Agreements, Company Restructuring, Penalty Abatements, Offer in Compromises, and Currently Not Collectible Status. We will also advise you if bankruptcy is an option.

irs and state tax debt representation

We will file a power of attorney with the IRS and State Taxing Authorities to negotiate an appropriate resolution for back tax debt including Installment Agreements, Penalty Abatements, Offer in Compromises, Innocent Spouse Requests, and Currently Not Collectible Status. We will also advise you if bankruptcy is a option.

new business entity formation

We will educate you of the pros and cons of organizing an Limited Liability Company versus a Corporation, S-Corp., Limited Partnership, etc. and assist in the formation of the entity of your choosing.

previous years tax returns

We will prepare your previous years tax returns to bring you back into compliance with the IRS and State.

business tax return preparation

Whether you have a sole proprietorship with a Schedule C or a 1120 Corporate return we will prepare any business return.

“The hardest thing in the world to understand is the income tax.”

— Albert Einstein, physicist

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Pennsylvania Reporting of Foreign Income