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ksnipps
New Member

Live in NJ work in Philadelphia, employer withheld PA taxes incorrectly. On the NJ return, do I add box 12 code D (TSP Contributions) to the NJ other wage income?

Filing a PA return to get reimbursed for PA witholdings back, just unsure of what other adjustments will be needed on NJ return due to W-2 being populated with PA state wages instead of NJ wages

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2 Replies
MarilynG
Expert Alumni

Live in NJ work in Philadelphia, employer withheld PA taxes incorrectly. On the NJ return, do I add box 12 code D (TSP Contributions) to the NJ other wage income?

Report all your income on your New Jersey Resident return.  The state interview will ask if you have non-New Jersey income or taxes paid to another state and give you credit for tax you paid to Pennsylvania.

Prepare your Non-Resident Pennsylvania return first. 

The TSP retirement contributions are for your Federal return, so you won't have to enter that amount in your state returns.

More info:

https://ttlc.intuit.com/replies/3302052  



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Live in NJ work in Philadelphia, employer withheld PA taxes incorrectly. On the NJ return, do I add box 12 code D (TSP Contributions) to the NJ other wage income?

Due to the reciprocal agreement between NJ and PA,  PA agrees not to tax the wages of a NJ resident.  NJ WILL NOT HONOR A REQUEST FOR CREDIT FOR TAXES PAID TO THE STATE OF PA.
You will need to file a PA non-resident return showing zero income and request a refund of any state income taxes withheld.
For NJ state wages, use the same amount as reported for federal.
You can request a credit on your NJ resident return for local taxes paid to a PA municipality such as Philadelphia wage tax.
And get the PA withholding stopped ASAP.  You employer may, but is not required to , withhold NJ taxes.
See <a rel="nofollow" target="_blank" href="https://www.state.nj.us/treasury/taxation/njit25.shtml">https://www.state.nj.us/treasury/taxation/nj...>
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