Moved during 2020

Forum|Forum|5 years ago
March 6, 2021
1 reply
4 views

My step-son moved from NJ to PA during 2020, but worked in PA the entire year. His W-2 is showing part of his wages and state income tax going to PA and part of his wages and state income tax going to NJ. How do I file his State taxes? Do I need to do part-year and non-resident forms for each state, or do I just do a regular state return for each showing only the income listed on his W-2?

Hal_Al

Level 15

Deleted

TomD8

Alumni - Champ

PA will not give a credit for taxes paid to reciprocal states such as NJ. Instead, the taxpayer should enter his entire full-year NJ withholding amount on his part-year resident NJ return. NJ will then refund the excess withholding.

https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Deductions-and-Credits.aspx#:~:text=If%20a%20taxpayer%20claims%20a,complete%20PA%2D40%20Schedule%20G%2DL.&text=The%20credit%20is%20limited%20to,with%20the%20highest%20tax%20rate.

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

Hal_Al

Level 15

@TomD8 Does reciprocity still apply in the case of part year residents? I know it doesn't in the case of Ohio and it's neighbors (including PA), but I don't know about PA-NJ.