PA-40 W-2 RW: PA W-2 Reconciliation Worksheet (PA-40 W-2 RW) (Revision)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024, 2025, 2026
The PA W-2 Reconciliation Worksheet provides additional information about wages reported on federal Form W-2 to help determine the proper gross compensation income for Pennsylvania personal income tax. It lists additions and subtractions that reconcile federal, Medicare, and Penn
Who files this form
You must complete the PA W-2 Reconciliation Worksheet when:
- Your W-2 Medicare wages in Box 5 are greater than your Pennsylvania wages in Box 16, and the W-2 does not contain enough information to reconcile the difference.
- You are a Pennsylvania resident working in another state, Pennsylvania tax was not withheld, and your W-2 does not contain enough information to adjust your wages to the worldwide wages subject to Pennsylvania personal income tax rules.
The worksheet may also be used to provide information about nonqualified deferred compensation distributions that were previously taxed.
What you'll need
- Your federal Form W-2. Use the taxpayer name and Social Security number, the employer identification number from Box b, and the applicable wage and benefit amounts.
- Your last pay statement of the year, when needed. The instructions direct you to use it for certain retirement plan deferrals, group-term life insurance costs, or personal use of a company vehicle when those amounts are not separately shown on the W-2 as specified.
- Proof of previously taxed deferred compensation, if applicable. For Line 17, include proof with your return that the nonqualified deferred compensation amounts were previously included in Pennsylvania wages.
Common mistakes
- Leaving columns incomplete. If you include this worksheet with a PA-40 return, you must complete all three columns.
- Exceeding the Line 18 limit. The child and dependent care benefit amount from W-2 Box 10 cannot exceed $5,000.
- Omitting proof for Line 17. Include proof with the return that the nonqualified deferred compensation amounts were previously included in Pennsylvania wages.
- Overlooking different finishing totals. Columns B and C should match. For a Pennsylvania resident working in Pennsylvania, they should also equal the Pennsylvania wages on the employer's W-2. If the finishing amounts do not match, include the Column C amount in total Gross Compensation on PA-40 Line 1a.
Questions people ask
What is this worksheet for?
It provides additional information about W-2 amounts so the department can reconcile wages and determine whether the proper gross compensation is reported for Pennsylvania personal income tax purposes.
What do the three columns compare?
Column A reconciles federal wages to Medicare wages. Column B reconciles federal wages to Pennsylvania wages. Column C reconciles Medicare wages to Pennsylvania wages.
Should I enter cents?
No. Use whole dollars only. Drop amounts below $0.50 and round amounts of $0.50 or more up to the next dollar.
How do I calculate the finishing amount?
For each column, add the Section I starting amount and the Section II, Line 10 total. Then subtract the Section III, Line 20 total.
Where do I enter adjustments that do not have their own line?
Use Lines 9a through 9e for other additions and Lines 19a through 19d for other subtractions. Provide full descriptions.