My daughter lives in NJ, but worked in PA. PA withheld taxes...box 15 lists PA, not NJ. Does she need to file taxes in both states?

[babze]

We know about the tax agreement between the states, but are confused as to whether we can just file NJ, even though PA taxes were withheld.

[SweetieJean]

Did she work in the city of Philadelphia?

[babze]

No, not in Philly

[SweetieJean · Accepted solution]

She must file both. The employer should have been withholding NJ taxes only, unless she worked in Philadelphia.

If you are a New Jersey resident and your employer withheld Pennsylvania income tax from wages, you must file a Pennsylvania non-resident return to get a refund. To stop the withholding of Pennsylvania income tax, complete Form REV-419EX, Employee’s Nonwithholding Application Certificate, and give it to the employer.

She will then have to file a NJ resident return.  She might be assessed underpayment interest and penalties there.

[SweetieJean]

Also see:
<a rel="nofollow" target="_blank" href="https://www.state.nj.us/treasury/taxation/njit25.shtml">https://www.state.nj.us/treasury/taxation/nj...>

[babze]

Thanks for your help!

[SweetieJean]

Be sure her employer starts withholding NJ taxes.