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PA and NJ have tax reciprocity for W-2 wages or salaries. That means that PA residents are exempt from NJ income tax on W-2 income earned in NJ. If your only income from NJ is W-2 income, then in the Personal Info section of TT, answer "No" to the question about having income from another state.
This also means that PA residents cannot claim an "other state credit" for state income taxes paid to NJ on W-2 income. If a NJ employer mistakenly withholds NJ taxes from the pay of a PA resident, the taxpayer must file a non-resident NJ return, showing zero NJ income, in order to obtain a refund.
PA residents who work in NJ should file Form NJ-165 with their NJ employer. Here's a link to that form:
https://www.nj.gov/treasury/taxation/pdf/current/nj165.pdf
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