No, the credit is the lesser of the tax paid to the other jurisdiction, or the tax New Jersey would charge.
In other words, New Jersey says, "We would charge you 1,738 on that income, but you already paid 2592 tax on that income, so we won't double-tax you"
New Jersey does NOT say "We would charge you 1,738 on that income and you paid 2592 to some other taxing authority, so WE will refund you the TAX you paid someone else"
It's one thing for the state to waive your tax liability, but they can't pay you a refund of tax they never received.
That would be like New Jersey paying Philadelphia.
According to the Sate of New Jersey:
“The Reciprocal Personal Income Tax Agreement between Pennsylvania and New Jersey means compensation paid to New Jersey residents employed in Pennsylvania is not subject to Pennsylvania income tax. Therefore, you cannot claim a credit on Schedule NJ-COJ for taxes paid to Pennsylvania on those earnings. New Jersey residents can claim a credit for taxes paid to Pennsylvania on other types of income (for example, business income) that are taxable in both states by completing Schedule NJ-COJ.
The New Jersey/Pennsylvania Reciprocal Agreement does not apply to income or wage tax imposed and collected by the City of Philadelphia or any other municipality in Pennsylvania. That means a New Jersey resident who works in Philadelphia and pays city wage taxes can claim a credit for the taxes paid to Philadelphia.”
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
