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Grivera00
New Member

What state do I pay taxes too?

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 ?

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2 Replies
TomD8
Level 15

What state do I pay taxes too?

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."

 NJ Rev Stat § 54A:5-8(2)

 

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.

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

What state do I pay taxes too?

Actually, PA will give you credit for the lesser of (1) taxes paid to NJ, or (2) taxes that would be due PA.

PA Schedule G-L - Resident Credit for Taxes Paid (PA-40/PA-41 G-L)

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