Multiple homes and state residency (PA and NJ)

Forum|Forum|4 years ago
February 7, 2022
1 reply
2 views

My GF and I work in NJ but now often telecommute from home (also in NJ). The NJ house is owned entirely by her.

I bought a house in PA (entirely owned by me) and we use it as a second home. Since we are both hybrid we will also at times telecommute from PA.

What is our tax obligation with regards to filing in PA? I think because of the reciprocal agreement, we don't need to file a PA return for our NJ wages?

Also, if I have investment income and am a partial PA resident, does that change the scenario?

Vanessa A

Level 15

If you are going to be a part year PA resident, then your investment income and employment income will both be taxable as a PA resident. You would need to track your days in PA and your days in NJ. Your income will be prorated for each state based on the time you spend in each state.

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jp127Author

Level 2

OK, thank you. So in TurboTax I trigger that by noting that I earned income in two different states? When I do that it specifies my PA state return as Nonresident and NJ as resident but as I understand it I should be filing both as resident?

Let me also make sure I am clear that this is a second house and we live in both. The TurboTax "lived in another state" seems to suggest only the "moved to another state" usage.

I assume I allocate my W2 by allocating business days, while investment income is allocated by percentage of calendar days?

Vanessa A

Level 15

You will trigger the second state if you answer yes in the Personal Info section to the question, Tell us the state(s) you lived in. Select yes, then enter PA and NJ.