Hi,
I live in PA and work as a clergyman in NJ. I receive salary and housing allowance on my W-2. I know that PA and NJ have reciprocal agreement and I am under the impression that PA doesn't recognize housing allowance when it comes to state tax withholding while NJ does.
My question is, if my impression with housing allowance is correct, is it possible to ask my employer to withhold NJ state tax to save on my state tax return? Or will I be forced to pay my state tax with PA no matter what so it's better to ask them to withhold PA state tax? Do I have a choice?
Thank you!
