I have been considering becoming an Uber eats driver for extra money on the side .
The thing is I live in Pennsylvania and my full time job is in New Jersey I would also be doing the Uber delivering in NJ since my full time job is located in a very busy area already full of restaurants and such .
Who would I pay taxes to PA because im a resident or NJ because I will probably do the bulk of my deliveries there ?
NJ and PA have tax reciprocity for W-2 earnings, but assuming you are paid as an independent contractor (you receive a 1099 at year's end and not a W-2), the following facts apply:
New Jersey taxes non-residents on "New Jersey source income", which by statute includes income earned: "In connection with a trade, profession, occupation carried on in this State or for the rendition of personal services performed in this State."
This means that you must 1) keep track of your income earned in NJ; 2) file a non-resident NJ tax return.
Your home state of PA can tax ALL your income including your earnings from NJ, but you'll be able to claim a credit on your PA return for the taxes paid to NJ, so you won't be double-taxed.
Actually, PA will give you credit for the lesser of (1) taxes paid to NJ, or (2) taxes that would be due PA.
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