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Level 2
December 23, 2022
Question

Last year, I lived in PA, but worked in NJ and I owed a lot of money on my taxes (over $6k.) Did I need to file a schedule G form to be credited for my taxes?

  • December 23, 2022
  • 3 replies
  • 31 views
Living in PA, Working in NJ

3 replies

SteamTrain
Level 15
December 23, 2022

Not sure what you are doing though.

 

IF you are working in NJ and live in PA...AND if it's a W-2 job?

......you should only be having PA taxes withheld by your employer, and no NJ tax return would be necessary.

 

Because of the Reciprocal tax agreement between NJ and PA, a W-2 employee living in PA and working in NJ is only liable for PA taxes.   No credit is given by PA for any NJ taxes withheld, because PA expects you to get all NJ withholding refunded, since NJ withholding should not be done in the first place.

 

Which states have reciprocal agreements? (intuit.com)

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
Alumni - Champ
December 23, 2022

PA and NJ have tax reciprocity for W2 salary/wages.  That means your W2 income from NJ is taxable only by your home state of PA.

If NJ taxes were mistakenly withheld from your pay, you'll have to file a non-resident NJ tax return on which you allocate zero income to NJ in order to have those taxes refunded.  (PA Schedule G would not apply unless you were a dual resident of both states.)

If you haven't already done so, you should submit NJ Form NJ-165 to your NJ employer.

https://www.state.nj.us/treasury/taxation/pdf/current/nj165.pdf

 

Filing Form NJ-165 should result in your employer withholding PA taxes only.

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.