topic I live in NJ but work in PA. My only income comes from PA. From what I understand, Pa and Nj have a reciprocity agreement so do I still need to file as a nonresident for Pa in State tax filing

I live in NJ but work in PA. My only income comes from PA. From what I understand, Pa and Nj have a reciprocity agreement so do I still need to file as a nonresident for Pa

lynnjaye — Wed, 05 Feb 2020 15:38:45 GMT

Re: I live in NJ but work in PA. My only income comes from PA. From what I understand, Pa and Nj ...

KatrinaB48 — Wed, 05 Feb 2020 15:58:10 GMT

No, as long as your employer has only withheld state tax from your resident state of New Jersey, you don't need to file a Pennsylvania return.

Re: I live in NJ but work in PA. My only income comes from PA. From what I understand, Pa and Nj have a reciprocity agreement so do I still need to file as a nonresident for Pa

JLD1 — Sat, 21 Mar 2020 18:05:28 GMT

i live in nj work in Philadelphia. the w2 shows taxes withheld in PA not NJ. Do i have to file a PA and New Jersey return?

Also i do not see any mention in the rey=turn regarding Philadelphia wage tax (which witholding was taken out)

Re: I live in NJ but work in PA. My only income comes from PA. From what I understand, Pa and Nj ...

MaryK4 — Sat, 21 Mar 2020 20:35:58 GMT

Yes, if you did not tell your employer to withhold NJ tax instead of PA, you will have to file a nonresident Pennsylvania return and a New Jersey Resident return. Because of the reciprocity agreement, you can choose to file zero income for PA to get a full refund of withholding OR nonresident with PA source income and get the credit for taxes paid to another state on NJ resident return.

Re: I live in NJ but work in PA. My only income comes from PA. From what I understand, Pa and Nj ...

JLD1 — Sun, 22 Mar 2020 08:54:53 GMT

thank you - one more question

they withheld Philadelphia wage tax - do I owe this?

Re: I live in NJ but work in PA. My only income comes from PA. From what I understand, Pa and Nj ...

DMarkM1 — Sun, 22 Mar 2020 15:59:49 GMT

Yes. The reciprocity agreement between these two states does not include city wage taxes. Here is a link from the NJ tax authorities on the subject. You will need to claim a credit on your NJ return for the city tax paid to Philadelphia.