CatinaT1
Expert Alumni

Get your taxes done using TurboTax

NJ and PA has a reciprocity agreement. As a NJ resident, you do not pay tax on wages earned in PA.

 

Because of the reciprocity agreement, I would just keep W2 Two for your records, assuming there is no PA withholdings in box 17.

 

The first W2 is showing your total income earned and assigned it all to NJ because you will not pay income tax in PA.

 

W2 Two shows the amount of income earned in PA only. So using your example, you earned 4/7th of the income in NJ and 3/7th of the income in PA.

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