If you were a full-year resident of NJ, you owe no state income tax to PA on your W-2 income.
The NJ-PA reciprocity agreement means that NJ residents who work in PA are not subject to PA state income tax on their W-2 wages or salaries. An NJ resident's W-2 income from PA is fully taxable only by their home state of NJ.
You should file PA Form REV-419 EX with your PA employer, if you have not already done so. This certifies that you are an NJ resident.
Ideally, your PA employer would withhold NJ taxes for you - but PA law does not require them to do so.
If your employer will not withhold NJ taxes for you, you should make quarterly estimated tax payment to NJ. This web reference has the information about that: https://www.state.nj.us/treasury/taxation/njit20.shtml
In the personal info section of TT, enter NJ as your state of residence, and answer NO to the question about having other state income.
The reciprocity agreement does not apply to local taxes; it applies only to state income taxes. And it applies only to W-2 income, not to any other type of income.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
