State tax filing

You will not be able to get a refund of Pennsylvania income tax withheld in error without filing a tax return. If PA tax was withheld in error, you will have to file a non-resident PA income tax return (PA-40) to get a full refund of your withholding. To do this,

• Go to the screen Compensation Summary and click Edit,
• On Verify Income, check Entire amount of this income is not taxable in PA.

This will create a non-resident PA tax return with $0 wages.

Mail your PA return to Harrisburg along with your W-2 and a copy of your New Jersey return, showing all the income was properly reported to PA. You can e-file, but if so, you may receive a letter from PA asking why your reported $0.

Here are PA’s instructions:

If you are a resident of a reciprocal agreement state working or performing services in Pennsylvania and your employer withheld Pennsylvania income tax, you may request a refund of the Pennsylvania tax. You report zero taxable compensation on Line 1a and the Pennsylvania tax withheld on Line 13. Submit federal Form W–2 or a photocopy and a copy of the resident income tax return that you filed/will file with your resident state. Also, submit a statement explaining that you are a resident of a reciprocal agreement state.

To receive a refund of Philadelphia City wage tax, fill out a refund petition. A petition for refund of "erroneously withheld wage tax from an
employee must be made by the employer for and on behalf of the employee".  The 2020 form is not available at this time. Check back at Wage Tax refund form.