The reciprocal agreement between Pennsylvania (PA) and Delaware (DE) is a topic that has gained a lot of attention lately, especially among those who frequently travel between the two states. This agreement allows individuals who live in one state and work in the other to pay income tax only to their home state. This is great news for those who had to pay taxes to both states previously.
The agreement was first introduced in 2019 and became effective on January 1, 2020. Before the agreement was put in place, individuals who worked in Delaware and lived in Pennsylvania had to pay taxes to both states. This, of course, was a financial burden for many, as they had to pay more taxes than they would if they only had to pay to their home state.
Under the reciprocal agreement, the tax liability of individuals living in Pennsylvania and working in Delaware is limited to Pennsylvania. Similarly, those who live in Delaware but work in Pennsylvania only have to pay taxes to Delaware. This means that those who commute between the two states no longer have to worry about double taxation and can save a significant amount of money.
Many people have welcomed the agreement, as it benefits both states and the individuals who live and work there. It simplifies tax filing and reduces the tax burden for thousands of people who commute between the two states.
Moreover, this agreement reinforces the idea that cooperation between states is essential to bring positive changes to people`s lives and the economy at large. It shows that states can come together to solve issues that affect their citizens and help create a better quality of life for everyone.
In conclusion, the reciprocal agreement between Pennsylvania and Delaware is a positive development for those who live and work in these two states. It simplifies tax filing and reduces the tax burden, making life easier for thousands of people. It also serves as an excellent example of cooperation between states, highlighting how working together can bring positive changes to citizens` lives.