I live in NJ and worked in PA. I had no PA income tax withheld for 2020. But I did pay the City of Reading the 1% income tax imposed by that town for 2020. It was withheld from my pay and did appear on my 2020 W2.
That tax, paid to Reading, did not appear as a credit paid to other jurisdiction in my 2020 NJ return prepared by Turbo Tax. Why not? From what I read in NJ tax regulations, this is a proper credit that can be taken on the NJ return.
In the Turbo Tax detail of my W2 (boxes 18 -20), it lists that City of Reading tax payment as being “Associated” with NJ.
