I live in NJ and work in PA. NJ state taxes were taken from my Pay. Am I required to fill out a PA state tax return? And Do I need to complete a Local Tax return for the city/county in PA where I work?

[cnjmallory]

NJ state taxes were taken from my Pay and Local PA taxes were taken.

[ChristinaS]

As far as the local tax return, you'll have to disclose the locality for an answer. You couldn't do that with Turbo Tax either way, but you also probably don't file one at all.

[ChristinaS]

No PA return.

NJ and PA have reciprocity, so you only pay and file with your home state. You can get a credit for the PA local taxes on your NJ return, but you don't file PA returns.

To input the credit for taxes paid to Philadelphia (or another such locality), you need to access the Credit For Taxes Paid section of the New Jersey interview under State Taxes.

• Skip to New Jersey return, and Update or Continue (the screens may vary slightly depending on how far you got in the NJ interview before)
• If you have been through most of the screens before, you will land at a summary page "You've Finished Your New Jersey Return"
• Update next to Taxes and Credits
• continue to Summary of Taxes Paid to Other States screen.
• Add State or Jurisdiction
• Select Pennsylvania
• On the Pennsylvania Credit screen, check the first box for Philadelphia or the second for another PA locality and say NO.
• Enter the local wages (double-taxed income) and taxes paid to the locality from your W2.

This will calculate your credit. Click PDF below for images. (the sample is Philly, but the other localities are  handled similarly)

No matter where you are in the interview, you can also go forward or back to find the Summary of Taxes Paid to Other States screen.