I know NJ and PA has a reciprocal tax agreement so I should not have to fill out a PA tax return but I have been getting conflicting information on the municipal tax I pay to the town of where I am employed. Can I get a tax credit if I am paying to this municipality in PA even though I live in NJ? According to the NJ tax page it says "Income From Philadelphia or Other Pennsylvania Municipalities. The Reciprocal Agreement does not apply to the wage or income tax imposed and collected by the City of Philadelphia or any other municipality in Pennsylvania. Therefore, income subject to both New Jersey income tax and any municipal wage or income tax may be included on Line 1, Schedule A." Am I reading this wrong or should I be getting some type of return for this municipality tax? When I enter all my info on turbo tax i do not seem to be getting refunded.
