I Live in NJ, but work in PA. I payed Philadelphia Local Tax. Do I file a return?

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I live in NJ, but work in PA and paid Philadelphia local tax. Do I get that money back? Do I have to file a local or PA state tax return?

Is there anything I should be doing different to my W4 to make sure I do not pay this, or am I required to pay it?

Thank you!

re2boys

Level 9

PA and NJ have a reciprocal agreement whereby they agree to not tax the wages of a resident of the other state. But this applies only at the state level, not local. The only reason to file a PA state return is if you had PA withholding from yor pay or if you had interest in a business or rental property that is in PA.

Philadelphia will not refund the taxes you paid while working in Philadelphia. However, you can claim a credit on your NJ resident tax return for these taxes paid to an out of state jurisdiction.

See page 42 of this document: http://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf

ldargiriou

Level 2

But, how do I fill out the forms? I tried going through NJ non-resident and TurboTax stated I owed money to NJ, which makes absolutely no sense. Then, I tried deleting that and filing just in PA with NJ income and that didn't seem to work either because we were not double-taxed. I'm just confused.

thiggins002

Level 2

Did you ever figure this out? The same thing is happening to me this year!

re2boys

Level 9

Philadelphia will not refund the taxes you paid while working in Philadelphia. However, you can claim a credit on your NJ resident tax return for these taxes paid to an out of state jurisdiction.

See page 42 of this document: http://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf

olive63

Level 2

My employer get money more in PA state than in NJ, so i i end up paying NJ State tax a lot what will i Do

JotikaT2

Alumni - Expert

Can you please clarify your question? What state do you reside in and which state do you work in?

Both PA and NJ have a state reciprocal agreement which means typically, you only need to file and pay income taxes within your state of residence. Please see the attached link for more information.

State reciprocal agreements

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