multiple state part year resident and reciprocal agreement and unemployment income!! help..

[picaboobunny2]

I lived in NJ but worked in PA from Jan to April of 2020. Then I moved to NY. While I'm residing in NY, I collected unemployment benefit from PA from May to Dec. PA didn't withheld tax from my w2 or unemployment income. So, do I have to file PA tax return in this case?  Also, NJ and PA has reciprocal agreement.  I also paid tax to Philadelphia on my earned income w2. Can I claim credit on my NJ return for Philly taxes I paid? 

[ErnieS0]

Pennsylvania does not tax unemployment so you do not have to file a PA income tax return. Your PA unemployment is taxable to New York, because you received those benefits while living in NY.

New Jersey and Pennsylvania do have a reciprocal agreement, meaning you do not have to file a PA return if you were a NJ resident who received a W-2 for working in PA. Your PA income is exempt from PA tax, but reportable and taxable to NJ.

New Jersey allows you to claim a credit for the Philadelphia wage tax. Employers frequently do not withhold NJ income tax on resident who work in Philadelphia because the credit covers the tax due on that income. You can claim the credit in the NJ section of TurboTax.

[picaboobunny2 · Accepted solution]

Thank you! But turbo tax  auto generated a non resident tax return for me to fill out for PA, do I just delete it? Since you said I only need to file 2 state tax returns(NJ and NY)

[JotikaT2]

That is correct.  You can delete the Pennsylvania (PA) return.

You do not have any filing requirements in PA since unemployment income is not taxable there as explained by ErnieS0 above.  

Therefore, you do not have anything to report within PA.

PA filing thresholds

PA unemployment income