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State tax filing
Pennsylvania does not tax unemployment so you do not have to file a PA income tax return. Your PA unemployment is taxable to New York, because you received those benefits while living in NY.
New Jersey and Pennsylvania do have a reciprocal agreement, meaning you do not have to file a PA return if you were a NJ resident who received a W-2 for working in PA. Your PA income is exempt from PA tax, but reportable and taxable to NJ.
New Jersey allows you to claim a credit for the Philadelphia wage tax. Employers frequently do not withhold NJ income tax on resident who work in Philadelphia because the credit covers the tax due on that income. You can claim the credit in the NJ section of TurboTax.
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May 12, 2021
6:35 AM