DianeW777
Expert Alumni

State tax filing

Yes, remove the New York (NY) wages (and possibly the Pennsylvania (PA) | see below) because they are being included twice on New Jersey (NJ).  NJ requires you to pay tax on all of your worldwide income as a resident.

 

You have two situations happening on your NJ resident return.  

  1. NY will not provide any relief or refund of the tax liability, meaning you must pay tax on the wages you earned in NY.  NJ will give you a credit for the taxes you paid to NY on the same income. You should prepare NY first.  This is called credit for taxes paid to another state or other state tax credit, depending on your state return.
  2. PA and NJ are reciprocal states.  This means PA will refund any tax that was withheld and paid to PA.  If you did NOT have any PA state withholding you do not need to file a PA return.  If you did, then you will receive a full refund.
    • If the wages for PA shown in your image are part of/included in the wages shown for NJ you should also remove them for the NJ return.
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