if we work in Philadelphia and live in NJ we used to answer No I didn't make money in other states?

[dbmcgrath]

If we live in NJ and work in Philadelphia, PA we used to answer no, I didn't make money in other states?

[MindyB · Accepted solution]

You are correct to mark "No".  New Jersey and Pennsylvania have a reciprocal agreement. As long as your PA employer withheld NJ taxes, you do not need to take further action.

If the employer withheld PA tax, file a Form REV-419 so they stop withholding PA tax.  Next, in order to get a refund of Pennsylvania tax, file a non-resident PA tax return, reporting zero income as Pennsylvania sourced, and request a refund.  For NJ, file a resident return and report the wages as if you earned them in NJ.

Here is more information on reciprocal states: What is a state reciprocal agreement?