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Mrojohn
New Member

Taxed in two states

Hello,

So I worked in NJ and was taxed in NJ, but I live in PA. I filled taxes in both states in NJ I am getting a return, but in PA it says I owe money. What are the chances either one of these states will realize there was an issue? My main concern is being asked to pay in PA after I have already been taxed in NJ. Will PA realize this and drop what I owe them?

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1 Reply
DanielV01
Expert Alumni

Taxed in two states

PA won't drop what you owe them, but you probably should get more refund from New Jersey.  PA and NJ are reciprocal states:  They agree you only pay taxes in the state you live in if you work in the other.  Since you live in PA, PA taxes all of your income.  But NJ should give you a full refund for taxes withheld.  To do this, you file a return with $0 income.  If you've already filed your NJ return, file an amendment to claim $0 income so that your remaining NJ withholdings are refunded.  

 

Also, speak to your employer so that as a PA resident you have taxes withheld to PA and not NJ.

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