I work in New Jersey, but live in Pennsylvania. PA state taxes are taken out of my paycheck. Why does turbo tax say I owe NJ state tax more than $4,000?

[TomD8 · Accepted solution]

If your NJ income consists entirely of W-2 earnings, you do not have to file an NJ tax return.  That income is taxable only by your home state of PA.  The two states have tax reciprocity for W-2 salaries and wages.

If that's your situation, answer NO to the question in My Info about having income from another state.  Then TurboTax will not generate an NJ return.

[juliaharmon32]

Thank you! This is very helpful.