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Level 2
January 19, 2024
Question

I live and work remotely in PA (all year). My company is located in NJ. Did I make money in another state?

  • January 19, 2024
  • 3 replies
  • 14 views
I am not an independent contractor, no 1099.

3 replies

AmyC
Level 15
January 19, 2024

Yes. You lived and worked in PA so you must file a PA return. You earned income from NJ so you have NJ source income. However, there is a NJ-PA reciprocal agreement in effect so you do not need to file the NJ return according to NJ. For more information, see Credit for Taxes Paid to Other Jurisdictions - NJ.gov

 

[edited 1/19/2023| 1:12PST] special thanks to @Hal_Al 

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Hal_Al
Level 15
Level 15
January 19, 2024

@Scotlass - Did your employer withhold NJ Tax? 

 

@AmyC  - What about the NJ - PA reciprocal agreement?  How does that work in conjunction with apparently competing  the PA -NJ telecommuting rules. 

ScotlassAuthor
Level 2
January 19, 2024

Hello and thank you for the quick response! They did not collect NJ taxes only PA.