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Old 07-03-2015, 12:34 AM
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Estimated Taxes for Relocation to DE or PA

Hi, I am relocating to the east coast taking a job in MD. Due to the job location, I can live in MD, PA, or DE. In that part of the state, the DE and PA schools are better, so I am trying to figure out how DE/PA compare to each other in the context of taxes knowing that I would be working in MD. If I assume a taxable income for both my wife and I to be around 190K both working in MD, is there an easy way to estimate if DE or PA is more tax friendly. Thanks



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Old 07-03-2015, 07:47 AM
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Hi, I am relocating to the east coast taking a job in MD.=====>>you are relocating to MD from your home state. You are a part year resident of MD and also are part year resident of your former home state; in this case, as there is state reciprocal agreements between PA and MD, if you work in MD and are a resident of PA or vice versa(if you work in PE as a resident of MD), then, you do not have to pay MD( or PA) income taxes on your wages. You would submit exemption Form MW 507 to your employer. However, if you work in DE as a non resident of DE as a full year resident of either MD or PA, then, you need to pay tax to DE on your DE source income, and can claim tax paid to DE on your MD or PA return.


Due to the job location, I can live in MD, PA, or DE. In that part of the state, the DE and PA schools are better, so I am trying to figure out how DE/PA compare to each other in the context of taxes knowing that I would be working in MD. If I assume a taxable income for both my wife and I to be around 190K both working in MD, is there an easy way to estimate if DE or PA is more tax friendly=========>>UNLESS you have taxable source income form DE or PA, you do not need to pay taxes to DE and PA; all o f $190K is exclusively from MD, then you as a full year resident of MD, need to pay tax on $190K to only MD NOT to PA/DE.



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