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Level 2
posted Apr 13, 2021 5:25:16 AM

Remove These Wages (Lived Half the Year in CT and Moved to PA 2nd half but Work in NJ full year

It is asking me to remove duplicate wages but not sure if I should remove any.  I did answer the question that I live in a different state and work elsewhere on my federal.  It gave me a response that PA is a reciprocity state.  I see three different wages, one for each state and currently working on my NJ state.  It also states that typically NJ will have higher wages than the federal but in my case, it isn't.  Please help!

 

Thanks

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1 Best answer
Level 15
Apr 13, 2021 1:15:48 PM

NJ return:  include only the NJ wages you earned while you were a resident of CT.   Do this return first.

 

CT return: include the portion of income you earned in NJ during your time as a CT.  Include any non-wage income you had while a CT resident.  Claim an Other State Credit for the taxes paid to NJ on that portion of your NJ income.  Do this return second.

 

PA return:  include all the income you earned in NJ after becoming a PA resident.  In effect that portion of your NJ income is PA income, because of reciprocity.   Include any non-wage income you had after the move to PA.  Take no Other State Credit.  Do this return last.

 

Your CT tax bill shouldn't be very high, due to the NJ credit.

 

Hope this helps!

3 Replies
Level 15
Apr 13, 2021 7:26:01 AM

Assuming your NJ-source income consists entirely of W-2 wages or salary:

 

The income you earned as a CT resident is taxable by both NJ and CT; the income you earned as a PA resident is taxable only by PA due to PA-NJ reciprocity.  So you'll file a non-resident NJ return reporting only the portion of your income earned as a CT resident; a part-year resident CT return reporting all your income earned as a CT resident; and a part-year resident PA return reporting all your income earned as a PA resident.  You'll be able to take an "other state credit" on your CT return for the taxes paid to NJ on that portion of your income.  You cannot take an other state credit on your PA return, because that portion of your income is taxable only by PA.

 

When you do your state returns you'll have to allocate the income accordingly.

Level 2
Apr 13, 2021 12:15:02 PM

Hi Tom

 

Thank you for taking time to respond.  Yes all sources of NJ income is W-2.  Just to be clear,  the numbers from my W2 were downloaded and imported into the software when doing my federal.  There are 3 different wage amounts for each of the states.   I'm currently doing the NJ state so, I should remove the wages for PA and leave the CT & NJ wages?  When doing the CT, I should only have the CT wages calculated during my time as a CT resident?  But, I should also take an "other state credit" on the CT return for taxes paid.  Is this why, the software currently, shows a high amount of taxes being owed to CT?  The same goes for PA, which should be the remaining portion of my income.  Thanks again for your time!

 

* This is to acknowledge that I understand this does not constitute tax or legal advise *

Level 15
Apr 13, 2021 1:15:48 PM

NJ return:  include only the NJ wages you earned while you were a resident of CT.   Do this return first.

 

CT return: include the portion of income you earned in NJ during your time as a CT.  Include any non-wage income you had while a CT resident.  Claim an Other State Credit for the taxes paid to NJ on that portion of your NJ income.  Do this return second.

 

PA return:  include all the income you earned in NJ after becoming a PA resident.  In effect that portion of your NJ income is PA income, because of reciprocity.   Include any non-wage income you had after the move to PA.  Take no Other State Credit.  Do this return last.

 

Your CT tax bill shouldn't be very high, due to the NJ credit.

 

Hope this helps!