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I live in PA but work in NJ. Do I need to report other wage adjustments (like my 403(b) for NJ return?

I'm stuck because TT is asking me to include other wage income description for NJ which I think is my 403(b).
1 Reply
Expert Alumni

I live in PA but work in NJ. Do I need to report other wage adjustments (like my 403(b) for NJ return?

No, you will not need to do this.  If NJ taxes were not withheld from your check, you will not need to file a return for NJ because PA and NJ are reciprocal states that agree that you are only taxed on your wages to the state where you live, and not where you work.  Therefore, if you did not have NJ state taxes withheld, you may delete the state return.  Here is how you would do that:

Even if NJ taxes are withheld (mistakenly), you still will not need to enter the adjustments.  You will adjust your income in NJ to show zero income, and that way you will get back all of the NJ state taxes withheld from your paycheck (which you will pay to PA).  You will also want to file a form with your employer so that they withhold PA tax instead of NJ tax.  Here is an FAQ to assist you with this:

Finally, here are some screenshots from the NJ return so that the income is exempted because of the reciprocal agreement with PA:  

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