Yes. If your employer has withheld taxes for the work state instead of the resident state, you'll have to file for a refund from your work state. You'll still file your resident return that also includes that income and pay tax on it.
In most cases, if you live in state that has income tax, you will get a credit on your tax return for the state you live in for part or all of the tax that you pay to the other state.
Once you've determined that you need to file a nonresident state return, the first thing you want to do is make sure you've filled out the Personal Info section correctly:
- With your return open, select My Info in the menu.
- On the Personal info summary screen, scroll down to Other State Income, and select Edit.
- At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
- Select Continue to return to your Personal info summary.
After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.
Tip: To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.
TurboTax FAQ: How do I file a nonresident state return?
Be sure to file Form NJ-165 (Employee's Certificate of Nonresidence in New Jersey) with your employer to stop the withholding of New Jersey taxes, and to start withholding Pennsylvania taxes from your paycheck.
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