If you live in PA and work in NJ, you need to let your employer know this.
Yes, those states have an agreement that if you live in one state and work in the other, you only pay tax to the state in which you live.
Your NJ employer should have been withholding PA tax. You should have given your employer Form NJ-165
If this is not what happened, and you had NJ tax withheld, you need to file a NON-RESIDENT state return for New Jersey, allocate NO income and get the tax that was withheld refunded.
Next you file your RESIDENT state return for Pennsylvania. You claim ALL your income and pay the tax on that income.
Since you should have been paying PA tax throughout the year, you may get a penalty from PA.
The employer SHOULD withhold and submit taxes to PA on your behalf (through payroll) but if they don't, you would need to make estimated payments to the state on your own.
Since it's April 2024, if you have not submitted any PA tax this year through withholding, you might want to send PA a payment for the first quarter of tax year 2024 to avoid a penalty next year.
HERE is more on the reciprocal agreement.
HERE is a link for making estimated tax payments to PA
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
