Last year, I lived in PA, but worked in NJ and I owed a lot of money on my taxes (over $6k.) Did I need to file a schedule G form to be credited for my taxes?

[Kelly10271]

Living in PA, Working in NJ

[Anonymous_]

See https://ttlc.intuit.com/community/after-you-file/discussion/my-local-taxes-are-asking-for-a-copy-of-...

[SteamTrain]

Not sure what you are doing though.

IF you are working in NJ and live in PA...AND if it's a W-2 job?

......you should only be having PA taxes withheld by your employer, and no NJ tax return would be necessary.

Because of the Reciprocal tax agreement between NJ and PA, a W-2 employee living in PA and working in NJ is only liable for PA taxes.   No credit is given by PA for any NJ taxes withheld, because PA expects you to get all NJ withholding refunded, since NJ withholding should not be done in the first place.

Which states have reciprocal agreements? (intuit.com)

[TomD8]

PA and NJ have tax reciprocity for W2 salary/wages.  That means your W2 income from NJ is taxable only by your home state of PA.

If NJ taxes were mistakenly withheld from your pay, you'll have to file a non-resident NJ tax return on which you allocate zero income to NJ in order to have those taxes refunded.  (PA Schedule G would not apply unless you were a dual resident of both states.)

If you haven't already done so, you should submit NJ Form NJ-165 to your NJ employer.

https://www.state.nj.us/treasury/taxation/pdf/current/nj165.pdf

Filing Form NJ-165 should result in your employer withholding PA taxes only.