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vp24
Level 2

NJ resident, Working in PA with rental and stocks income

I and my wife are NJ residents. I work in NJ , my wife work in PA.  We have some extra income from rental property located in NJ and some income from stocks.  

After finishing federal return, TT is taking me into PA return, asking me questions about rental property and stocks income.

1- Do I have to answer Yes to the question (in My Info section ) if we earn in state other than NJ ?

 

2-  Do I have to file PA nonresident  return ?

 

3-  Can I get NJ credit for taxes paid to local town in PA ?

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Accepted Solutions

NJ resident, Working in PA with rental and stocks income

there's a reciprocal agreement between NJ and PA so the taxpayer should only pay taxes in their resident state on wages.  if your wife only had NJ tax withheld there's no need to file in a PA state return. Can't say about local tax since you didn't specify it (what state is showing on her W-2 in the state section). if not, you'll have to file a non-resident return in PA to get back the w/h. the PA return needs to be prepared first in this case. also your wife should give her employer Form REV-419 so there's only NJ w/h. employers are not obligated to do this.

https://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/EmployerWithholding/Documents/rev... 

 

Can I get NJ credit for taxes paid to local town in PA. the following applies if it is an income tax that's imposed. 

Income earned in Pennsylvania Municipalities. The Reciprocal Agreement does not apply to the income tax imposed and collected by any municipality in Pennsylvania. Therefore credit is allowed.

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1 Reply

NJ resident, Working in PA with rental and stocks income

there's a reciprocal agreement between NJ and PA so the taxpayer should only pay taxes in their resident state on wages.  if your wife only had NJ tax withheld there's no need to file in a PA state return. Can't say about local tax since you didn't specify it (what state is showing on her W-2 in the state section). if not, you'll have to file a non-resident return in PA to get back the w/h. the PA return needs to be prepared first in this case. also your wife should give her employer Form REV-419 so there's only NJ w/h. employers are not obligated to do this.

https://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/EmployerWithholding/Documents/rev... 

 

Can I get NJ credit for taxes paid to local town in PA. the following applies if it is an income tax that's imposed. 

Income earned in Pennsylvania Municipalities. The Reciprocal Agreement does not apply to the income tax imposed and collected by any municipality in Pennsylvania. Therefore credit is allowed.

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