When I did my taxes, it says I paid $4023.94 in state income tax. I work remotely for a company based in NJ and moved from NJ to PA in the middle of 2023. Based on what was my taxable income for the time I worked in NJ, my total tax was $554, so it says I should be refunded $3470.
I submitted my Pennsylvania taxes and it says I owe $1784 in taxes to PA, which makes sense to me. However, as part of my tax forms generated by TurboTax, I also got a 2023 NJ-1040NR-V Payment Voucher which says I owe 2023 New Jersey income taxes totaling $1686.
This doesn't make sense to me. Why am I getting a refund from NJ but still owing NJ money? Also why is the amount of state taxes I owe PA and NJ more than the refund I am getting from NJ?
I submitted a NJ-165 to my employer when I moved which states that there is a reciprocal agreement between PA and NJ that makes me exempt from withholding NJ Income Tax, and my employer can withhold PA Income Tax on my behalf. However, my employer is not registered in PA for tax purposes, so says I have to have NJ taxes taken out. Which I guess is fine, but I still do not understand why I would own NJ money through the NJ-1040NR paperwork when I am already overpaying my NJ taxes and should be getting a refund.
Did I do something wrong on my taxes? Turbo Tax didn't let me fill out a form about getting double taxed due to the agreement between PA and NJ, but now it says I own then both money which is more than the amount I am being refunded. I would appreciate any advice on how to handle this.
Thanks!
