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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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.

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

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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.

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

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