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posted Jun 4, 2019 12:18:15 PM

Hey. I live in NJ work in Philadelphia. Can my City Wage Tax be included when determining the amount of tax paid during the year for potential penalties?

Live In New Jersey work in Philadelphia.   The amount of NJ taxes withheld did not meet the minimum to not be penalized.    Can I add to the amount withheld the City Wage Tax, if I do then I do meet the minimum needed to have paid during the year.

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Expert Alumni
Jun 4, 2019 12:18:16 PM

No, you cannot include the city wage tax as a NJ tax payment (for the purpose of the underpayment penalty).

However, did you make sure you added the Credit for Taxes Paid in the NJ interview? You can include taxes paid to PA localities like Philadelphia towards this credit, which reduces your NJ tax liability in the first place.

Review instructions here:

https://ttlc.intuit.com/questions/3458910-where-do-i-enter-credit-for-income-paid-to-other-jurisdict...