swh220
Returning Member

Taxes withheld from incorrect state - part time resident in both states

I moved from NJ to PA in this previous year and as I understand I am therefore a part time resident in both states. However, when I started my job in PA I incorrectly had NJ taxes withheld for two months as the payment system still had my old NJ address. This was fixed and was changed to PA taxes withheld for the rest of the year. 

 

I spoke to a tax expert through the TurboTax free basic live feature who recommended it leaving it in this "incorrect" state and filing. This seems simple enough and is fine with me if it does not get me in trouble - the tax expert said this would not be questioned and avoids any difficulties NJ might give me in returning additional taxes.

 

I see I can adjust my taxable income in each part-time resident tax return. This results in a larger NJ return and sets up a payment plan to pay additional PA taxes over the next year. This seems technically correct but more complicated and I am concerned I could make some kind of mistake in this approach. 

 

Any thoughts on what I should do? If you recommend the second approach, let me know if it sounds like I am on the right track with what I described.