What should I do if I worked in NJ but live in PA? My W-2 shows NJ for tax [Box-15] and nothing about PA. Is this a mistake on my W-2?

[dpytell]

On my W-2, I have a copy for Employee Records, a copy to be filed with Employee's Federal Return and a copy to be filed with employees tax return for NJ. The last segment of my W-2 is all blank. I just want to make sure I'm filing the correct way.

Again, I've lived in PA all year and worked in NJ but, according to this W-2, it looks like no PA tax and I have to file in NJ.

Thanks in advance for help!

[JulieCo · Accepted solution]

You are correct that your employer should be withholding PA taxes from your paychecks since you live in PA.  Generally, you are to pay taxes in the state where you earn the income (NJ), but New Jersey and Pennsylvania have a reciprocal agreement which is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns.  Therefore, because you work in NJ and live in PA, you normally should have PA taxes withheld and only have to file taxes in PA.

But, since NJ taxes were withheld on your paychecks, you will need to file a non-resident return to NJ for 2018, and you should put that your income earned in the state is $0, so that you can get the taxes withheld refunded to you. 

Plus, you will need to file a resident return for PA. 

And, you need to fill out this exemption form for NJ and give it to your employer, instructing them to withhold taxes for PA from your paychecks:  NJ-165

Below is information on filing a non-resident return in TurboTax:

https://ttlc.intuit.com/replies/3302052