All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Posts: 1
Registered: ‎03-13-2018

Two state tax filing for a business

My wife lives in Pennsylvania. 


She works as an independent self employed contractor in Delaware.


She receives a 1099 Misc.


If all of her earnings are in Delaware, does she have to report them as wages in Pennsylvania?


On PA-C, I am asked" Did you operate your business in Pennsylvania for all of 2017?"

The answer is no.

Did you operate your business outside Pennsylvania for all of 2017 and income should be exempt from PA tax?The answer is yes...I think.  When I answer yes to this, it brings the income declared on the PA tax down to zero, which seems wrong.Does that mean that her business income isn't a wage that can be taxed? What if she does some work from a home office, located in PA, but all of her clientele and earnings are derived from Delaware, where she is licensed to practice?