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New Member
posted Jun 6, 2019 9:31:15 AM

I received a state refund from NJ which is a reciprocal state. Must I pay federal taxes on the refund if it was used to pay PA state taxes.

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1 Best answer
Level 15
Jun 6, 2019 9:31:17 AM

Yes, since you get to deduct the state taxes paid to PA on your Federal return.

1 Replies
Level 15
Jun 6, 2019 9:31:17 AM

Yes, since you get to deduct the state taxes paid to PA on your Federal return.