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I am a New Jersey resident. My Pennsylvania employer incorrectly withheld state tax in that state.How do I get a refund using TurboTax?

I am a New Jersey resident. Last year I worked in Philadelphia and received wages accordingly. Under the reciprocal agreement between NJ and PA, I should pay state tax to PA. But my employer incorrectly withheld the PA state tax on my salary. I am using TurboTax to file a PA state tax, but I see no option that allows me to get the refund. Please help.
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Accepted Solutions
DS30
New Member

I am a New Jersey resident. My Pennsylvania employer incorrectly withheld state tax in that state.How do I get a refund using TurboTax?

In order to get the full refund of your PA state income tax withholdings, you will need to file a nonresident PA return but report zero "0" income from PA (even though you do have PA wage income). You need to file your PA return this way because NJ does not allow a credit for tax paid to a reciprocal state on wages, salaries and commissions. If tax was withheld by a reciprocal state (PA), you must file directly with the state for a refund of those taxes. You must mail in this PA nonresident state income tax return and include your state W-2 information. You will want to include an explanatory statement with your PA return stating your situation (that your PA employer withheld PA taxes from your wages in error due to a reciprocal agreement with NJ).


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1 Reply
DS30
New Member

I am a New Jersey resident. My Pennsylvania employer incorrectly withheld state tax in that state.How do I get a refund using TurboTax?

In order to get the full refund of your PA state income tax withholdings, you will need to file a nonresident PA return but report zero "0" income from PA (even though you do have PA wage income). You need to file your PA return this way because NJ does not allow a credit for tax paid to a reciprocal state on wages, salaries and commissions. If tax was withheld by a reciprocal state (PA), you must file directly with the state for a refund of those taxes. You must mail in this PA nonresident state income tax return and include your state W-2 information. You will want to include an explanatory statement with your PA return stating your situation (that your PA employer withheld PA taxes from your wages in error due to a reciprocal agreement with NJ).


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