Should TurboTax Deluxe automatically have credited taxes paid to Philadelphia from NJ-1040, line 43? W-2 shows almost $800 paid to Philadelphia, PA.

[mimosa139]

I've used TurboTax before and always received credit for wages paid to Philadelphia. Has something changed this year?

[ErnieS0 · Accepted solution]

No. You have to enter the credit manually for Philadelphia Wage Tax paid because Philadelphia is a city so it’s not automatically calculated by TurboTax.

To receive credit for Philly wage tax:

• Click State in the left column
• Click Continue on Let's get your state taxes done right
• Click Continue next to New Jersey
• Keep going until you reach Credit for Taxes Paid to Another State. Click Work on Credit
• Select Pennsylvania as State or Jurisdiction. TurboTax says For Philadelphia (or another Pennsylvania taxing authority), select "Pennsylvania". Continue
• Enter Philadelphia for Name of City, Town, Jurisdiction or Municipality. Continue
• Enter your Double-taxed income and Tax paid to Philadelphia. Philadelphia wages (W-2 Box 18) may be higher than your NJ wages because Philadelphia taxes 401(k) contributions so you may have to adjust the double-tax income and tax paid to Philadelphia amounts.

Learn more at Credit for Income Taxes Paid to Other Jurisdictions (Wage Income).

[mimosa139]

Thank you for the direction. This must be particular to the on-line software. The CD version I've used in the past did it automatically.