topic I live in NJ but have had 2 PA jobs in 2019, one of which is in Philly. 1 W2 has PA in box 15 and the other has NJ in Box 15 but Philly Non-Resi in box 20, what to do? in State tax filing

I live in NJ but have had 2 PA jobs in 2019, one of which is in Philly. 1 W2 has PA in box 15 and the other has NJ in Box 15 but Philly Non-Resi in box 20, what to do?

oneglory — Tue, 04 Feb 2020 19:31:22 GMT

W2 #1:
Box 15: PA
Box 20: PA (local)

W2 #2:
Box 15: NJ
Box 20: 510101 (philly non-resident)

Note: there's also an amount in box 17 that went to NJ (I had them stop this in Jan of 2019)

Re: I live in NJ but have had 2 PA jobs in 2019, one of which is in Philly. 1 W2 has PA in box 15...

DaveF1006 — Tue, 04 Feb 2020 19:08:36 GMT

The information in Box 20 is information you need to fill out a Philly City Tax return as a non-resident. Turbo Tax does not support filing a Philadelphia city Tax Return but that information is there for you for future reference. It is safe to assume you do not need to include this in your W2 information. Please review this link for further information on filing Philadelphia City Returns.

Re: I live in NJ but have had 2 PA jobs in 2019, one of which is in Philly. 1 W2 has PA in box 15...

oneglory — Tue, 04 Feb 2020 19:43:44 GMT

Hi, Thanks!

My questions are:

for W2 #1 do I need to select "Pennsylvania" in "Other state income" in "My info" for this?
for W2 #1 do I need to file a PA return?
for W2 #2 I don't believe I need to file a PA return for Philly Non-Resident (wage) taxes/local. Or do I? I should be doing the credit section when I'm doing the NJ return correct?

It's just a bit confusing what selections I should be making and what forms I should be doing.

Re: I live in NJ but have had 2 PA jobs in 2019, one of which is in Philly. 1 W2 has PA in box 15...

AmyC — Tue, 04 Feb 2020 20:23:35 GMT

1. Yes, you do have PA state income because it was incorrectly withheld. NJ and PA are reciprocal states. You should not have had PA state tax taken from you at all. You are supposed to give Rev-419 to your employer. Here is the link for reciprocal states with more information.

2. You will have to file a PA return on those PA wages showing you are a NJ resident.

3. You worked in Philadelphia so you pay taxes there. Since it came out of your wages, you do not need to file a city return.

4. You will file a credit on your NJ return for the PA tax liability. The program requires you create your PA return first and then your NJ for figures to calculate correctly.

Re: I live in NJ but have had 2 PA jobs in 2019, one of which is in Philly. 1 W2 has PA in box 15...

oneglory — Tue, 11 Feb 2020 14:15:26 GMT

one more question:

I do work in Philly,

Currently my employer is taking out Philly (wage) tax but it looks like they are not taking NJ taxes out or they are being taken out incorrectly. The Philly (wage) tax credit is not enough to cover my NJ taxes. I'm assuming this is incorrect.

Re: I live in NJ but have had 2 PA jobs in 2019, one of which is in Philly. 1 W2 has PA in box 15...

KarenJ2 — Tue, 11 Feb 2020 17:14:13 GMT

As PA and NJ are reciprocal states, both W-2s should have had only NJ state tax withheld (and Philly nonresident tax for one W-2). If you had PA tax withheld in error, you can use your refund from PA to help cover your NJ tax.

If they are not taking out NJ taxes, as Amy said in her above response, it is very important that you give Rev-419 to your employer. If you are a New Jersey resident and your employer withheld Pennsylvania income tax from wages, you must file a Pennsylvania return to get a refund.

To stop the withholding of Pennsylvania income tax, complete Form REV-419EX Employee’s Nonwithholding Application Certificate, and give it to your employer. More information is available on the Pennsylvania Department of Revenue website or by calling 1-717-787-8201.

Re: I live in NJ but have had 2 PA jobs in 2019, one of which is in Philly. 1 W2 has PA in box 15...

oneglory — Wed, 26 Feb 2020 20:26:22 GMT

Another question:

My employer is under the impression that the Philadelphia wage tax is enough to cover my NJ taxes. As I've been owing more and more taxes every year I don't think this is correct.

The reciprocal agreement doesn't apply to municipalities
The Philadelphia credit given by NJ is only a partial credit (which isn't covering my NJ Taxes)
I still should be paying NJ taxes
I should be paying both NJ and the Philly tax

Can you tell me if the above points are correct so I can have my employer turn my NJ taxes "back on". Thanks!

Re: I live in NJ but have had 2 PA jobs in 2019, one of which is in Philly. 1 W2 has PA in box 15...

MaryK4 — Sat, 29 Feb 2020 21:00:28 GMT

You employer should be withholding Philadelphia AND New Jersey tax. Unfortunately, as you said there is no reciprocity for municipalities but you still claim the credit. However, the credit is not enough to cover the New Jersey state income tax because the city tax is less than the NJ state tax. I would suggest asking your employer to withhold New Jersey tax.

@oneglory