How does Pennsylvania tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in Pennsylvania.
• If you're considered a full-year or part-year resident of Pennsylvania, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.


2. I worked remotely from Pennsylvania.
• Pennsylvania taxes income earned for personal services performed while in Pennsylvania (even if you're a nonresident). This includes remote work for an employer or clients based outside Pennsylvania if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your resident return for any income required to be reported in multiple states. If you were a nonresident of the following states: Indiana, Maryland, New Jersey, Ohio, Virginia, or West Virginia; and your employer withheld income tax from them, you must file a nonresident state return to claim a refund from that state.


3. My employer was based in Pennsylvania.
• You'll likely have to pay tax on income earned working remotely for an employer based in Pennsylvania even if you didn't work in Pennsylvania. Generally, income earned working for a Pennsylvania employer will be considered taxable in Pennsylvania unless the nonresident employee is working out of state for the benefit of the employer.
• If you do have taxable nonresident income in Pennyslvania, you should be able to claim a credit for taxes paid to another state on your resident state tax return for any income required to be reported in multiple states.

If your wages were minimal and you didn't do any other business in Pennsylvania, it's possible you will be exempt from filing regardless of residency. See the Pennsylvania PIT instructions for more information.