Pennsylvania Form PA-40 Schedule G-L is the Resident Credit for Taxes Paid by PA Resident to Other States, and every Pennsylvania resident who paid income tax to another state on income that Pennsylvania also taxes must file it with their PA-40 to claim a credit and avoid double taxation. The form is authorized under 72 P.S. § 7314 and administered by the Pennsylvania Department of Revenue.
Skipping Schedule G-L when it applies means paying twice on the same dollar of income, and the Department of Revenue processes more than 6 million PA-40 returns each year with a notable share involving out-of-state credits — a single math error on Line 7 can wipe out a four-figure credit and trigger a notice within 10–14 weeks of filing, per the agency’s processing time guidance.
Here is what this guide will give you:
- 📄 A complete line-by-line walkthrough of every field on Schedule G-L using the current revision
- 🧾 Three real-world filled-out scenarios with named filers and exact numbers
- ⚖️ Clear rules on reciprocal states, wage vs. non-wage income, and multi-state filings
- 💻 Filing instructions for paper mail, myPATH online, and approved tax software
- ❌ A list of the most common errors that cause the credit to be reduced or denied
What the Form Is and Who Must File It
PA-40 Schedule G-L is the schedule a Pennsylvania resident attaches to the PA-40 Personal Income Tax Return to claim a dollar-for-dollar credit for income tax paid to another state on income that is also subject to Pennsylvania’s flat 3.07% personal income tax. The credit prevents the same income from being taxed twice when a resident earns money across state lines. The schedule replaced the older PA-40 Schedule G-R/G-S structure and is now the single form used for each non-reciprocal state.
You must file Schedule G-L if you were a Pennsylvania resident or part-year resident for the tax year, you earned income that another state taxed, and that income falls into one of Pennsylvania’s eight classes of taxable income described in the PA Personal Income Tax Guide. The eight classes include compensation, interest, dividends, net profits from a business, net gains from property dispositions, rents and royalties, estate or trust income, and gambling winnings.
You file a separate Schedule G-L for each state where you paid tax, so a resident with income from New York and California files two schedules. Wages earned in a reciprocal state — New Jersey, Ohio, Virginia, West Virginia, Maryland, or Indiana — do not qualify for the credit because under the PA reciprocity agreements those wages are taxable only in Pennsylvania. Non-wage income from a reciprocal state, like rental property in Maryland, still qualifies.
The form must be the revision matching your tax year. The current revision is the 2025 version (rev. 09-25), used for returns filed in early 2026. Filing an outdated revision causes the Department to recalculate the credit using the correct year’s rules, often reducing the amount.
Before You Start: Documents and Information You Need
Pulling every document together before opening Schedule G-L saves rework, because the credit calculation depends on exact figures from another state’s return. Missing one number forces you to estimate, and estimates almost always trigger an adjustment letter from the Department of Revenue.
Here is the pre-filing checklist with at least eight items you must gather:
- Your completed federal Form 1040 — needed because PA taxable income starts from federal classifications, and missing this means you cannot reconcile what other states taxed.
- Your draft PA-40 — you need PA taxable income figures on Lines 1a through 8 before you can complete Schedule G-L Line 4.
- The other state’s filed income tax return — the actual tax liability shown on that state’s return, not withholding, drives Line 7. Without it, the credit is unverifiable.
- Form W-2 or 1099 showing the other state’s withholding — required as proof of the source state and the income amount; missing W-2s cause the credit to be denied at processing.
- Schedule of income by source state — a worksheet listing exactly which dollars came from which state; missing this leads to over-claiming the credit.
- Proof of payment if balance was due to the other state — canceled check, bank record, or state portal receipt; necessary because the credit is based on tax actually paid.
- Prior-year PA-40 Schedule G-L if you carried forward any unused credit — though Schedule G-L credits do not carry forward, you may need prior records for amended returns.
- Reciprocal state wage records (if any) — you need to subtract reciprocal wages from any combined-state income before completing Line 1.
- Your Social Security Number and your spouse’s SSN if filing jointly — both must match the PA-40 exactly; mismatches reject the schedule.
- A copy of the other state’s instructions — to verify what counts as “income tax” versus a city tax, franchise tax, or fee, since only true income taxes qualify.
Where to Get the Form and How to Access It
The official source for Schedule G-L is the Pennsylvania Department of Revenue Forms page, where each year’s revision is posted as a fillable PDF. Always download the form directly from this page rather than a third-party site, because mirror sites sometimes host outdated revisions that the Department’s scanners reject.
You can also access Schedule G-L through three other channels. The myPATH portal auto-loads the schedule when you indicate other-state income during the PA-40 interview. Approved commercial software such as TurboTax, H&R Block, TaxAct, and Drake all include Schedule G-L and pull figures from your federal return. Paper copies are available at any Department of Revenue district office or by calling the forms-order line at 1-800-362-2050.
If you use a tax professional, they will generate Schedule G-L through their software, but you should still verify the numbers. Preparer software occasionally classifies non-wage income from a reciprocal state incorrectly, removing it from the credit when it should qualify.
The form is two pages. Page 1 holds the calculation, and Page 2 holds the worksheet for taxpayers who must allocate income across multiple PA classes for the same state. The 09-25 revision adds clearer instructions on the proportional limitation in Line 6, so confirm the bottom-left footer shows that revision date before you begin.
Step-by-Step: How to Fill Out PA-40 Schedule G-L Line by Line
This is the spine of the article. Each field gets its own subsection covering what the field asks, how to answer it, an example entry, a nuance, the most common mistake with its consequence, and the misconception filers carry into the box.
Taxpayer Name
This field at the top of Schedule G-L asks for your full legal name as it appears on your PA-40. Enter the primary taxpayer’s name in the format First M. Last, matching exactly what is on your PA-40 Page 1, Line 1.
For example, Maria E. Lopez writes her name exactly as printed on her Social Security card and PA-40, with no nicknames or initials swapped. If you use a married name on PA-40 but a maiden name on the other state’s return, still use your PA-40 name here, because the Department matches by SSN and the name on Schedule G-L.
A nuance arises when one spouse earns the out-of-state income on a joint PA-40. Enter the name of the spouse whose income generated the credit, not both names, since each Schedule G-L tracks one filer’s other-state activity.
The most common mistake is writing both spouses’ names on a single Schedule G-L when only one spouse had the out-of-state income. The consequence is that the Department prorates the credit incorrectly and may reduce it by 50%. A common misconception is that the name field is decorative; in reality, it controls how the credit attaches to your joint return.
Social Security Number
This field asks for the nine-digit Social Security Number of the taxpayer named above. Enter the digits with dashes in the format 123-45-6789, matching the SSN on your PA-40.
For example, Carlos Reyes enters 198-45-7723, exactly as printed on his Social Security card. If filing jointly and both spouses had out-of-state income, file two separate Schedule G-Ls, each with the relevant spouse’s SSN.
A nuance: if you have an Individual Taxpayer Identification Number (ITIN) instead of an SSN, use the ITIN here. The Department accepts ITINs for resident filers who lack SSNs.
The most common mistake is transposing two digits, which causes the schedule to detach from your PA-40 during processing. The consequence is the credit is denied and a notice issued. The misconception is that the SSN only matters on Page 1 of PA-40; it actually anchors every schedule to the return.
State Abbreviation (Top of Form)
This field asks for the two-letter postal abbreviation of the state to which you paid tax. Enter the abbreviation in capital letters, such as NY, CA, or DE.
For example, Janet Kim paid tax to New York on rental income, so she enters NY in the state box. Use the standard United States Postal Service abbreviation; do not write the full state name.
A nuance: for the District of Columbia, enter DC. For tax paid to a U.S. territory like Puerto Rico, Schedule G-L does not apply because territories are not states under 72 P.S. § 7314 — a different schedule (Schedule G-S for foreign or territorial credits historically) applied, and current PA guidance treats those credits separately.
The most common mistake is listing two states on one Schedule G-L. The consequence is the Department disallows both credits and asks you to refile. The misconception is that “neighboring states can share a schedule” — they cannot.
Line 1 — Income Subject to Tax in Both Pennsylvania and the Other State
Line 1 asks for the amount of income that is taxed by both Pennsylvania and the other state. Enter the dollar amount as a whole number, no cents, no commas in the boxed entry but commas allowed in handwritten entries.
For example, Marcus Bell worked in New York and earned $84,500 in wages there. Because New York taxed it and Pennsylvania taxes the same compensation under Class 1 income, he writes 84500 on Line 1.
A nuance: only the portion taxed by both states goes here. If New York taxed $84,500 but only $60,000 represented days worked in New York under New York’s convenience-of-the-employer rule, enter the full $84,500 because New York actually taxed that amount, even if you believe it was over-inclusive.
The most common mistake is entering federal AGI here. The consequence is a credit far larger than allowed, which the Department zeroes out. The misconception is that “income taxed by the other state” equals “wages earned while physically there”; New York and several other states tax based on employer location, not physical presence, so the figure must come from the other state’s return, not your geography.
Line 2 — Adjustments to Line 1
Line 2 asks you to back out any income on Line 1 that Pennsylvania does not actually tax, such as Section 125 cafeteria-plan contributions Pennsylvania exempts but other states tax. Enter the adjustment as a positive number; the form subtracts it.
For example, Aisha Patel had $4,000 in pre-tax 401(k) contributions that Pennsylvania does not allow as a reduction (PA taxes 401(k) contributions when made). She enters 0 on Line 2 because there is no PA-side reduction to make.
A nuance: the adjustments here are usually small and apply to Section 125 medical premiums, dependent-care benefits, or HSA contributions where PA and the other state diverge.
The most common mistake is entering 401(k) contributions on Line 2 thinking PA exempts them. The consequence is an under-claimed credit. The misconception that Pennsylvania mirrors federal pretax treatment causes most of these errors; PA is its own world for retirement-plan timing.
Line 3 — Net Income Subject to Tax in Both States (Line 1 minus Line 2)
Line 3 is a calculation field: subtract Line 2 from Line 1 and enter the result. Enter the difference as a whole-dollar number.
For example, Marcus had 84500 on Line 1 and 0 on Line 2, so he enters 84500 on Line 3.
A nuance: Line 3 cannot be negative. If Line 2 exceeds Line 1, enter zero, and you have no credit to claim on this Schedule G-L.
The most common mistake is forgetting to perform the subtraction in software that does not auto-calculate. The consequence is a math error notice. The misconception that Line 3 always equals Line 1 fails for filers with Section 125 differences.
Line 4 — Total PA Taxable Income
Line 4 asks for your total Pennsylvania taxable income from PA-40 Line 9. Enter the total of all eight income classes after PA adjustments.
For example, Janet Kim shows $112,000 on PA-40 Line 9, so she writes 112000 on Line 4 of every Schedule G-L she files.
A nuance: even if you file two Schedule G-Ls (for two different states), Line 4 is the same on both because it is your total PA taxable income, not the slice for one state.
The most common mistake is entering only the income tied to the source state. The consequence is the proportion on Line 5 inflates and the credit is denied as overstated. The misconception that “Line 4 is the state-specific number” wrecks the calculation; it is the global PA total.
Line 5 — Proportion (Line 3 divided by Line 4)
Line 5 asks you to divide Line 3 by Line 4 and express the result as a decimal carried to six places. Enter the figure in decimal form, such as 0.754464.
For example, Marcus divides 84500 / 112000 = 0.754464 and enters that on Line 5.
A nuance: round to six decimal places, not four; the Department’s processing manual requires this precision because the credit can swing by dollars.
The most common mistake is rounding to two decimals, which understates the proportion. The consequence is a smaller credit than allowed. The misconception that the proportion is a percentage (e.g., entering 75.45%) causes the form’s reader to multiply incorrectly.
Line 6 — PA Tax on Income Subject to Tax in Both States (Line 5 × PA-40 Line 12)
Line 6 multiplies the proportion on Line 5 by the Pennsylvania tax shown on PA-40 Line 12. The result is the PA tax attributable to the doubly taxed income, and this is the cap on your credit.
For example, Marcus’s PA-40 Line 12 is $3,438.40 (3.07% of $112,000). He multiplies 0.754464 × 3438.40 = 2594.39 and enters 2594 on Line 6.
A nuance: PA’s tax rate is a flat 3.07%, so Line 6 always equals Line 3 × 0.0307 in practice. Use the proportion method to comply with the form, but the shortcut helps you sanity-check the result.
The most common mistake is multiplying by total tax including additions like the Tax Forgiveness Credit recapture. The consequence is an inflated cap. The misconception that “more PA tax in the cap means more credit” misses the point — Line 6 is a ceiling, not the credit itself.
Line 7 — Income Tax Paid to the Other State
Line 7 asks for the actual income tax liability shown on the other state’s return, not the amount withheld. Enter the figure from the “total tax” line of the other state’s return.
For example, Marcus’s New York IT-201 shows total New York State tax of $4,820 (after credits but before payments), so he enters 4820 on Line 7. Withholding of $5,200 is irrelevant to this line.
A nuance: if the other state is a city or local jurisdiction (NYC, Philadelphia for nonresidents elsewhere, Yonkers), only the state-level income tax counts. NYC tax does not go on Line 7. The PA Personal Income Tax Guide chapter on Resident Credit is explicit that local taxes are excluded.
The most common mistake is entering withholding from the W-2 instead of actual tax. The consequence is the credit is recalculated using the smaller of withholding or actual tax, and the difference is billed back. The misconception that “what came out of my paycheck is my tax” is the single biggest Schedule G-L error.
Line 8 — Resident Credit (Smaller of Line 6 or Line 7)
Line 8 asks for the smaller of Line 6 (the PA-tax cap) or Line 7 (the other state’s tax). Enter that smaller figure as the credit you may claim.
For example, Marcus compares Line 6 (2594) and Line 7 (4820) and enters 2594 on Line 8 because PA does not credit more tax than PA itself imposes on the income.
A nuance: when you file multiple Schedule G-Ls, sum each Line 8 and report the total on PA-40 Line 22. Each schedule’s Line 8 is computed independently; you cannot pool excess Line 7 from one state to cover a shortfall in another.
The most common mistake is taking the larger of Line 6 or Line 7. The consequence is a clear overclaim, leading to denial and a 5% underpayment penalty under 72 P.S. § 7352. The misconception that “I paid more to the other state, so I get more credit” ignores that Pennsylvania caps the credit at its own rate.
Page 2 Worksheet — Multi-Class Allocation
Page 2 is used when income subject to both states’ tax falls into more than one PA income class — for example, wages plus interest from a bank in the same state. Enter each class on a separate line and total to Line 1 of Page 1.
For example, Daniel Cho earned $40,000 in compensation and $2,500 in interest from California-source accounts. He lists 40000 under Class 1 (Compensation) and 2500 under Class 4 (Interest), totals 42500, and carries that to Page 1, Line 1.
A nuance: Schedule SP, Tax Forgiveness, and other PA credits are computed before the resident credit, so Page 2 amounts must reflect post-Schedule-SP figures.
The most common mistake is double-counting income across classes. The consequence is overstated Line 1. The misconception that “the worksheet is optional” leads to reviewer kickbacks for any multi-class filer who skipped it.
Three Filled-Out Examples Using Real Scenarios
These three named examples show end-to-end completion using realistic 2025 numbers.
Scenario 1 — Marcus Bell: PA Resident Working Remotely for an NY Employer
Marcus lives in Philadelphia and works remotely for a Manhattan employer. Under New York’s convenience-of-the-employer rule, all his wages are taxable to New York.
| Form Section | What Marcus Enters |
|---|---|
| Taxpayer Name | Marcus J. Bell |
| Social Security Number | 201-44-9087 |
| State Abbreviation | NY |
| Line 1 — Income Taxed by Both | 84500 |
| Line 2 — Adjustments | 0 |
| Line 3 — Net Doubly Taxed Income | 84500 |
| Line 4 — Total PA Taxable Income | 112000 |
| Line 5 — Proportion | 0.754464 |
| Line 6 — PA Tax on Doubly Taxed Income | 2594 |
| Line 7 — NY Tax Paid | 4820 |
| Line 8 — Resident Credit (smaller of 6 or 7) | 2594 |
Scenario 2 — Janet Kim: PA Resident with Rental Income in California
Janet lives in Pittsburgh and owns a duplex in Sacramento. California taxes the rental net income, and Pennsylvania also taxes it under Class 6 (Rents and Royalties).
| Form Section | What Janet Enters |
|---|---|
| Taxpayer Name | Janet S. Kim |
| Social Security Number | 314-22-5566 |
| State Abbreviation | CA |
| Line 1 — Income Taxed by Both | 18000 |
| Line 2 — Adjustments | 0 |
| Line 3 — Net Doubly Taxed Income | 18000 |
| Line 4 — Total PA Taxable Income | 95000 |
| Line 5 — Proportion | 0.189474 |
| Line 6 — PA Tax on Doubly Taxed Income | 553 |
| Line 7 — CA Tax Paid | 812 |
| Line 8 — Resident Credit (smaller of 6 or 7) | 553 |
Scenario 3 — Daniel Cho: PA Resident Selling Investment Real Estate in Delaware
Daniel lives in Allentown and sold a Rehoboth Beach condo in 2025, generating a capital gain that Delaware taxed as nonresident income.
| Form Section | What Daniel Enters |
|---|---|
| Taxpayer Name | Daniel H. Cho |
| Social Security Number | 489-71-3300 |
| State Abbreviation | DE |
| Line 1 — Income Taxed by Both | 62000 |
| Line 2 — Adjustments | 0 |
| Line 3 — Net Doubly Taxed Income | 62000 |
| Line 4 — Total PA Taxable Income | 148000 |
| Line 5 — Proportion | 0.418919 |
| Line 6 — PA Tax on Doubly Taxed Income | 1903 |
| Line 7 — DE Tax Paid | 3410 |
| Line 8 — Resident Credit (smaller of 6 or 7) | 1903 |
How to File the Completed Form
Schedule G-L is filed as an attachment to your PA-40, never on its own. You choose among three filing channels, and each has different timing, fees, and proof-of-filing.
The online channel is the myPATH portal, the Department’s free filing system. There is no fee. Payment of any balance due is made by ACH from a bank account or by credit card (2.49% convenience fee charged by the third-party processor). Processing time is typically 4–6 weeks for refunds. Your proof of filing is the myPATH submission ID emailed to you immediately and stored in your account.
The paper-mail channel sends your PA-40 with Schedule G-L attached. There is no filing fee. If you owe tax, mail a check payable to “PA Department of Revenue” with Form PA-V payment voucher. Mail returns with payment to PA Department of Revenue, Payment Enclosed, 1 Revenue Place, Harrisburg, PA 17129-0001, and refund or no-payment returns to PA Department of Revenue, Refund/Credit Requested, 3 Revenue Place, Harrisburg, PA 17129-0003. Processing runs 10–14 weeks. Keep your USPS Certified Mail receipt as proof.
The approved tax software channel (TurboTax, H&R Block, TaxAct, Drake, ProSeries) e-files your PA-40 with Schedule G-L embedded. Software fees vary; PA does not charge for transmission. Expect 4–6 weeks for refunds. Save the IRS/PA acknowledgment files as proof of filing.
You must attach a complete copy of the other state’s return to your PA-40 when you claim the credit. Without it, the credit is denied even if Schedule G-L is perfect.
What Happens After You File
After filing, the Department of Revenue runs your PA-40 through automated matching that compares Schedule G-L Line 7 to the other state’s reported tax. Mismatches generate a Notice of Adjustment, usually within 90 days, asking you to verify the other state’s tax liability with a stamped copy of that state’s return.
If your numbers match, the credit reduces your PA tax on Line 22 and either lowers a balance due or increases your refund. Refunds via direct deposit hit your account within 4–6 weeks for e-filed returns and 10–14 weeks for paper. Balance-due payments must be made by April 15, 2026, for the 2025 tax year, or interest accrues from that date at the federal short-term rate plus 3%.
If the credit is denied, you receive a notice explaining the reason and a 30-day window to respond. You may file a Petition for Reassessment with the Board of Appeals if you disagree, and beyond that the Board of Finance and Revenue, then Commonwealth Court.
Records supporting Schedule G-L must be kept for four years under PA’s statute of limitations, longer if the IRS adjusts your federal return because that triggers a corresponding PA amendment.
Mistakes to Avoid When Filling Out the Form
Schedule G-L errors are field-specific, and each has a direct cost.
- Entering withholding on Line 7 instead of actual tax — the credit is reduced to whichever is smaller.
- Filing one Schedule G-L for two states — both credits are denied.
- Claiming a credit on reciprocal-state wages — the entire credit is zeroed out.
- Including local tax (NYC, Yonkers, San Francisco payroll tax) on Line 7 — the local portion is removed.
- Putting federal AGI on Line 1 — credit is recalculated to the correct figure, often dropping by 60% or more.
- Forgetting to attach the other state’s return — credit is denied at processing.
- Using prior-year revision of Schedule G-L — Department recalculates under the wrong year’s rules.
- Mismatching SSN to PA-40 — schedule detaches and credit disappears.
- Rounding Line 5 to two decimals — credit underclaims by tens to low hundreds of dollars.
- Taking the larger of Line 6 or Line 7 on Line 8 — overclaim, denial, plus a 5% underpayment penalty under 72 P.S. § 7352.
- Ignoring Page 2 worksheet for multi-class income — the schedule is kicked back for revision.
- Claiming a credit for tax paid to a U.S. territory like Puerto Rico on Schedule G-L — the form does not cover territories.
Do’s and Don’ts
A handful of habits prevent most denials. These rules apply to every filer.
- Do download Schedule G-L fresh each year from the Department of Revenue forms page, because revisions change line numbers.
- Do file a separate schedule for each state, since the form is one-state-per-page by design.
- Do attach a complete copy of the other state’s return, because the Department verifies Line 7 against it.
- Do keep records for four years, as PA’s audit window matches.
- Do carry the proportion on Line 5 to six decimal places, the precision the calculation requires.
- Do verify reciprocal-state status before claiming wages, since reciprocity is an automatic disqualifier.
- Don’t include withholding instead of actual tax on Line 7, because the credit will be reduced.
- Don’t combine state and local taxes on Line 7, since local tax is not creditable.
- Don’t claim a credit for income PA does not tax, because the math collapses.
- Don’t use Schedule G-L for foreign-country tax, since that is handled differently and not via this form.
- Don’t assume software handles reciprocity correctly — verify NJ, OH, VA, WV, MD, IN wages are excluded.
- Don’t sign the schedule itself; the PA-40 signature governs both.
Pros and Cons of Filing on Your Own vs. With Help
Schedule G-L is doable solo for simple cases, but multi-state filers often benefit from professional help.
Pros of filing on your own:
- No preparer fees, saving $200–$600.
- Full control over line entries, especially Line 7 sourcing.
- Faster turnaround when using myPATH directly.
- Direct relationship with the Department for any follow-up questions.
- Builds your understanding of PA’s flat-tax mechanics.
Cons of filing on your own:
- Easy to misclassify reciprocal-state income.
- Hard to compute the proportion correctly without software.
- No professional review of the other state’s return for the Line 7 figure.
- Math errors trigger notices that take weeks to resolve.
- Risk of missing the multi-class Page 2 worksheet entirely.
FAQs
Do I need to file a separate Schedule G-L for each state where I paid tax?
Yes. Pennsylvania requires one Schedule G-L per state. Filing combined credits on a single schedule causes the Department to deny both credits and request refiling.
Can I claim a credit for wages earned in New Jersey?
No. New Jersey is a reciprocal state, so wages are taxed only by Pennsylvania under the PA-NJ reciprocity agreement. Non-wage NJ income still qualifies.
Does Schedule G-L cover taxes paid to foreign countries?
No. Schedule G-L applies only to U.S. states and the District of Columbia. Foreign tax credits are handled through different rules and not on this form.
Is the credit limited to 3.07% of the doubly taxed income?
Yes. Pennsylvania’s flat 3.07% rate effectively caps Line 6, so the credit cannot exceed the PA tax on that slice of income, even if the other state taxed more.
Do I enter my W-2 withholding on Line 7?
No. Line 7 asks for the other state’s actual tax liability shown on that state’s return, not the withholding. Using withholding causes the most common Schedule G-L error.
Can I claim a credit for New York City tax?
No. NYC tax is a local tax, not a state tax. Only New York State income tax goes on Line 7; NYC tax is excluded under PA’s resident-credit rules.
Do I write my full middle name on the Taxpayer Name line?
No. A middle initial matches PA-40 Page 1. Use the same format on Schedule G-L as on PA-40 to avoid SSN-name mismatches at processing.
Should Line 4 differ between two Schedule G-Ls I file?
No. Line 4 is your total PA taxable income from PA-40 Line 9 and is identical on every Schedule G-L you attach to the same return.
Do I include Section 125 medical premiums on Line 2?
Yes. If the other state allowed pretax treatment but Pennsylvania did not, the difference reduces the doubly taxed income on Line 2 to align the two states’ bases.
Can the credit create a refund larger than my PA tax?
No. The resident credit is nonrefundable beyond your PA tax liability. Any unused portion does not carry forward and is lost after the filing year.
Do I attach the other state’s return to my PA-40?
Yes. A complete copy of the other state’s return must accompany the PA-40 and Schedule G-L, or the Department denies the credit at processing.
Is the credit allowed if the other state issued me a refund?
Yes, but only based on net tax. If you received a refund, your Line 7 figure must reflect tax after refund — that is, your true liability, not the gross withholding you started with.
Do part-year Pennsylvania residents file Schedule G-L?
Yes. Part-year residents claim the credit only for income earned during the PA-resident portion of the year, prorated to match their PA-40 Schedule NRH allocation.
Does local Pennsylvania earned income tax (EIT) use Schedule G-L?
No. Local EIT credits operate under Act 32 through your local tax collector, not Schedule G-L. The state and local credits are computed separately, though the underlying income overlaps.
Related reading
- How to Fill Out Pennsylvania Form PA-40 Schedule A (w/Examples) + FAQs
- How to Fill Out Pennsylvania Form PA-40 Schedule B (w/Examples) + FAQs
- How to Fill Out Pennsylvania Form PA-40 Schedule SP (w/Examples) + FAQs
- How to Fill Out Pennsylvania Form PA-40 Schedule W-2S (w/Examples) + FAQs
- How to Fill Out Pennsylvania Form PA-40 X (w/Examples) + FAQs
- How to Fill Out Pennsylvania Form PA-W3 (w/Examples) + FAQs