Section 121.8. Method of taxing part-year residents

(a) If a person is a part-year resident he shall be subject to the Commonwealth personal income tax as a resident for only that part of the year in which he was a resident. A taxpayer should indicate on Form PA-40 the length of time he was a resident.

(b) In addition, if a person derived income from sources within this Commonwealth during that part of the taxable year in which he was a nonresident, he shall be subject to the Commonwealth personal income tax as a nonresident for that part of the taxable year on income derived within this Commonwealth. In such case, both his taxable income as a resident and his taxable income as a nonresident should be entered on the same Form PA-40 in order to compute your total tax liability. If as a nonresident his compensation was not subject to withholding or if he derived income from a business and did not maintain records which clearly reflected his income within this Commonwealth, reference should be made to the instructions to Schedule H on how to apportion your income.