Does Pennsylvania collect state taxes on unemployment compensation?
Posted by happyvalley in Pennsylvania Q&A on July 27, 2009 | 2 responses
Does Pennsylvania collect state taxes on unemployment compensation?
I am a contract engineer and a resident of Alabama. During 2007 I worked in, and paid Alabama and Illinois State taxes. I also collected unemployment compensation from the state of Pennsylvania in 2007 as I worked in Pennsylvania the previous year and paid into PA unemployment that year.
I claim the unemployment income on my Federal Taxes.
Since the only income I had from PA was unemployment income, firstly does Pennsylvania collect state taxes on unemployment income, and if NO, do I even need to file a state return with PA?
2 Responses to “Does Pennsylvania collect state taxes on unemployment compensation?”
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Yes, PA absolutely collects taxes from unemployment—sucks, doesn’t it? UNLESS—did you request the taxes being taken out w/ every check you received?
Hi. Pennsylvania gives the income taxes withheld back if you owe no income tax to Pennsylvania. That commonwealth has a line on the PA-40 wherewith the taxpayer can subtract his unemployment compensation back off. The IRS taxes it; the states allow you to subtract it. You have to file with Pennsylvania to get that money back that you had to pay in to the fund. It’s the same with any income tax that Pennsylvania withheld from you.