NJ Resident can't take full credit for Philadelphia City Wage Tax

[stations54]

When I complete the information for taxes paid to other jurisdictions and choose Philadelphia, it is reducing my credit and not allowing me to take the full amount as a credit.  Do I need to file a Philadelphia city wage tax return to get the balance I can't use as a credit for NJ?

[SweetieJean]

The rule is that you can take credit for taxes paid to Philadelphia only to the extent of the NJ taxes you would owe on that same wage income.  So, if your NJ taxes would be $100, you can only credit $100, even if Phila is higher. It also cannot be used as a credit against any non-wage income.

And no, you cannot get it back from the City of Phila either.

[stations54]

Thank you for the prompt response!  What's odd is that if I attribute the income and tax to PA and not Philadelphia, it allows me to take the full credit.  That tells me that the NJ tax on that income level isn't less than the credit I am taking but for some reason it is specific to Philadelphia City Wage Tax.  I checked last year's return and I didn't have this issue and the circumstances and dollar amounts were almost identical.

Thanks,

Gary