I Live in NJ, but work in PA. I payed Philadelphia Local Tax. Do I file a return?

[emilyannkuch]

I live in NJ, but work in PA and paid Philadelphia local tax.  Do I get that money back?  Do I have to file a local or PA state tax return? 

Is there anything I should be doing different to my W4 to make sure I do not pay this, or am I required to pay it?

Thank you!

[re2boys]

PA and NJ have a reciprocal agreement whereby they agree to not tax the wages of a resident of the other state.  But this applies only at the state level, not local.  The only reason to file a PA state return is if you had PA withholding from yor pay or if you had interest in a business or rental property that is in PA.

Philadelphia will not refund the taxes you paid while working in Philadelphia.  However, you can claim a credit on your NJ resident tax return for these taxes paid to an out of state jurisdiction.

See page 42 of this document:  http://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf

[ldargiriou]

But, how do I fill out the forms? I tried going through NJ non-resident and TurboTax stated I owed money to NJ, which makes absolutely no sense. Then, I tried deleting that and filing just in PA with NJ income and that didn't seem to work either because we were not double-taxed. I'm just confused.

[robadams864]

I paid local income tax in Philadelphia but i live in New Jersey  and Turbotax is saying i owe New Jersey state tax  why?

[mrenzi1]

Turbo Tax needs to fix this!  I had the same problem last year and I cannot remember what I did to fix it, now I'm on hold for support.  This is NOT an uncommon issue - fix this Turbo Tax!!!!

[davendeb]

I also live in NJ and work in philadelphia and pay the city wage tax.  My question is WHAT values do you put in for Double Taxed income and local tax paid to get the credit?

My W2 has blank values for boxes 18,19 and 20.  
I paid an extra 25 per paycheck to NJ state and over 2,500 to city wage tax in philadelphia.
Can i just enter the tax paid to philly and take the diffrence or credit for the taxes I paid to the State Of NJ.

Example.  I paid 686 taxes to NJ state and paid 2200 to philly wage. NJ will give me a credit for the difference which is around 1600. This tax me from owing NJ 500 to getting a 500 refund.

Please help!

[howard-lew]

NJ Resident, worked in Philadelphia. Looks like I filled out the NJ state tax correctly and will be getting a refund. I looked through the PA state taxes and nothing seems to be deducted tax wise (just Philadelphia). Do I need to file the PA state form then?

[re2boys]

If your income in Philadelphia was wages, you do not owe any PA state income tax or need to file.  If PA state taxes were mistakenly withheld, then you would need to file to get a full refund. You can't get a refund of the Philly wage tax, but you can use the Philly tax to get a credit on your NJ return for taxes paid to another state.

[re2boys]

PA and NJ have a reciprocal agreement whereby they agree to not tax the wages of a resident of the other state.  But this applies only at the state level, not local.  The only reason to file a PA state return is if you had PA withholding from yor pay or if you had interest in a business or rental property that is in PA.

Philadelphia will not refund the taxes you paid while working in Philadelphia.  However, you can claim a credit on your NJ resident tax return for these taxes paid to an out of state jurisdiction.

See page 42 of this document:  http://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf

[olive63]

My employer get money more in PA state than in NJ, so i i end up paying NJ State tax a lot what will i Do

[JotikaT2]

Can you please clarify your question?  What state do you reside in and which state do you work in?

Both PA and NJ have a state reciprocal agreement which means typically, you only need to file and pay income taxes within your state of residence.  Please see the attached link for more information.

State reciprocal agreements

[thiggins002]

Did you ever figure this out? The same thing is happening to me this year!

[DanielV01]

@thiggins002  Please clarify what is happening to you this year.  You are posting on a thread that has situations more than 2 years old on it, but we'll be happy to assist.