My step-son moved from NJ to PA during 2020, but worked in PA the entire year. His W-2 is showing part of his wages and state income tax going to PA and part of his wages and state income tax going to NJ. How do I file his State taxes? Do I need to do part-year and non-resident forms for each state, or do I just do a regular state return for each showing only the income listed on his W-2?
PA will not give a credit for taxes paid to reciprocal states such as NJ. Instead, the taxpayer should enter his entire full-year NJ withholding amount on his part-year resident NJ return. NJ will then refund the excess withholding.
@TomD8 Does reciprocity still apply in the case of part year residents? I know it doesn't in the case of Ohio and it's neighbors (including PA), but I don't know about PA-NJ.
In its tax publication that I referenced previously, PA clearly states it will not grant a credit for taxes paid to reciprocal states.
I've deleted my previous answer.
@TomD8 Are you able to instruct poster on how to file his part year returns for both state?