PA won't drop what you owe them, but you probably should get more refund from New Jersey. PA and NJ are reciprocal states: They agree you only pay taxes in the state you live in if you work in the other. Since you live in PA, PA taxes all of your income. But NJ should give you a full refund for taxes withheld. To do this, you file a return with $0 income. If you've already filed your NJ return, file an amendment to claim $0 income so that your remaining NJ withholdings are refunded.
Also, speak to your employer so that as a PA resident you have taxes withheld to PA and not NJ.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
