NJ taxes all income made plus deferrals to retirement, you would need to check with HR to see what all NJ does differently on your paycheck.
PA resident so PA taxes all income.
You will need to file NJ nonresident return. You will pay NJ tax on the income and claim a credit on your PA return. Please carefully follow these directions.
You will need to prepare the states in a special order. You may need to delete both states and begin again.
- First, prepare your non-resident NJ return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
- THEN prepare your resident state PA return and it will generate a credit for your income already being taxed in the non-resident state.
- The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.
It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.
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