No PA return.
NJ and PA have reciprocity, so you only pay and file with your home state. You can get a credit for the PA local taxes on your NJ return, but you don't file PA returns.
To input the credit for taxes paid to Philadelphia (or another such locality), you need to access the Credit For Taxes Paid section of the New Jersey interview under State Taxes.
- Skip to New Jersey return, and Update or Continue (the screens may vary slightly depending on how far you got in the NJ interview before)
- If you have been through most of the screens before, you will land at a summary page "You've Finished Your New Jersey Return"
- Update next to Taxes and Credits
- continue to Summary of Taxes Paid to Other States screen.
- Add State or Jurisdiction
- Select Pennsylvania
- On the Pennsylvania Credit screen, check the first box for Philadelphia or the second for another PA locality and say NO.
- Enter the local wages (double-taxed income) and taxes paid to the locality from your W2.
This will calculate your credit. Click PDF below for images. (the sample is Philly, but the other localities are handled similarly)
No matter where you are in the interview, you can also go forward or back to find the Summary of Taxes Paid to Other States screen.
