I lived in NJ, but worked in PA for two months before becoming a resident in PA. Does this affect my state income taxes paid?

[DS30 · Accepted solution]

No. Because PA and NJ have a reciprocal agreement related to wage income (which allows nonresidents to not have nonresident state withholding taxes taken out for wages earned in the reciprocal state), you will only need to divide your wages based on the time you were a part-year resident in each state (regardless of which of the 2 states you worked in).

So if total wages are being reported one W-2, then just divide your wages based on the time in each state and report these amounts separately on your part-year resident state income tax returns of each state.

For example if you made $18,000 of PA-sourced wages of which $4,000 was from working in PA but lived in NJ, you will still divide your wages and allocate the income from the 2 months of PA-sourced wages ($4,000) to your part-year NJ state income tax return.

Check below for more information about filing a part-year state tax return (Please select "see entire answer" to see full answer)

https://ttlc.intuit.com/replies/3302008