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I live in NJ and work in PA. I paid PA income taxes. Why do I owe NJ taxes?
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May 31, 2019
10:15 PM
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State tax filing
If all your PA income is from W2 wages, you should not be paying any income tax to PA . PA and NJ have a reciprocal agreement.
1. File REV419 ASAP to stop the PA withholding.
2. Read this: http://www.state.nj.us/treasury/taxation/njit25.shtml
3.. Prepare your federal return.
4. Prepare a PA non-resident return showing zero compnesation and request a full refund of the taxes withheld.
5. Prepare a NJ resident return showing all income, including that earned in PA.
6. Make sure that you claim a credit for taxes paid as local taxes to a PA municipality. There should be an amount on line 41 of your NJ 1040
May 31, 2019
10:15 PM