topic NJ/Philadelphia Reciprocity Agreement in State tax filing

NJ/Philadelphia Reciprocity Agreement

JKostic10 — Fri, 26 Feb 2021 21:00:18 GMT

I live in NJ and work in Philadelphia. When filling out our taxes this year, I'm only getting 10% credit on the taxes I paid to Philadelphia for my NJ state taxes. I've done my taxes using Turbo Tax the same way for the past 7ish years and when I enter the amount I paid to Philadelphia, I usually get credit for the entire amount aka I don't owe anything additional to NJ. Wondering if this is an issue with TurboTax, if I'm missing something, or some new law that passed due to COVID (tried to look that up, but couldn't find anything).

Any help would be appreciated.

Re: NJ/Philadelphia Reciprocity Agreement

ErnieS0 — Mon, 01 Mar 2021 03:28:12 GMT

Nothing has changed with the law or TurboTax. You should be getting full credit on your New Jersey tax return. Without seeing your forms, I cannot provide much insight.

Check your entries.

On your W-2, are the Philly wages in Box 19 equal or higher than the NJ state wage in Box 16?
In the NJ section, are the double taxed amounts and tax paid to Philadelphia correct?

If so, the calculation will be correct. Schedule NJ-COJ will show you the math.

Related Resources:

Credit for Income Taxes Paid to Other Jurisdictions (Wage Income)

Re: NJ/Philadelphia Reciprocity Agreement

JKostic10 — Mon, 01 Mar 2021 21:01:43 GMT

Ernie,

Thanks for the help. Was a simple mistake on my part. I had incorrectly entered my NJ wages in box 19; basically added an extra 1 when I copy and pasted, whoops. Didn't think about going back to check that!