Work in Philly live in jersey

[Pleasehelp5]

Please someone smarter than me help me. I live in nj but work in philly. 
On my pay stubs i pay Philadelphia income tax and nj income tax. Significantly more to Philly. 
On my w2, nj is in box 15. 

Finally caved to get a live agent that totally didn’t care or know any better than me. Total waste of time and money. Tried telling me i owe nj 1400 dollars. in addition to over 300 to file for both nj and pa. On that fact alone, i think she was trying to scam me. I don’t think i need to file both. Can someone with a brainstem actually help me. And maybe dumb it down for me so i can understand how to just do this myself. Im single with like no assets. 

[TomK2023]

You must file a Pennsylvania tax return as well as a New Jersey tax return.

"Every resident, part-year resident or nonresident individual must file a Pennsylvania Income Tax Return (PA-40) when he or she realizes income generating $1 or more in tax, even if no tax is due"

Commonwealth of Pennsylvania - Brief Overview and Filing Requirements

You must file a New Jersey tax return if your income  is above a certain threshold - $10,000 if Single.

NJ Division of Taxation

New Jersey and Pennsylvania are reciprocal states.

Just be sure to fill out your Personal Info correctly during the program interview; i.e., that you are a resident of New Jersey, and that you work in Pennsylvania.

Also, when completing your state tax returns, be sure to finish the non-residential return first (Pennsylvania), and then the residential return second (New Jersey).  Doing this will insure that NJ will give you credit for any tax that your employer withheld in PA.

In the future...

"A reciprocal agreement, also called reciprocity, 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.

If your employer has withheld taxes for the work state instead of the resident state, you'll have to file for a refund from your work state. You'll still file your resident return that also includes that income and pay tax on it.

TurboTax handles reciprocal states and will generate the correct state(s) based on your personal information and your W-2."

"As a worker in a reciprocal state, you can fill out that state's exemption form and give it to your employer if you don't want them to withhold taxes for your work state. If you do this, make sure your employer also withholds taxes for your resident state, otherwise you may get hit with underpayment penalties come tax time."

Pennsylvania Department of Revenue - Employee's Nonwithholding Application Certificate (REV-419

For more information, please see TurboTax FAQ: What is a state reciprocal agreement?

For more information, please see TurboTax FAQ: Which states have reciprocal agreements?

[Hal_Al]

You do not need to file a PA state or Philadelphia city tax return.  NJ & PA are reciprocal. Your employer did it correctly, withholding  NJ state tax but not PA (not withholding enough is a separate issue between you and your employer). 

The reciprocal agreement does not cover city taxes. Philadelphia gets to take tax directly out of your pay. You cannot get it refunded. But you do not need to file a city return, unless there was a mistake in the amount withheld (unusual).

I'm not familiar with NJ forms. There may be a credit for the city tax withheld. If so, it will come up in the NJ interview.