I started a job in PA

[chrisanthony13]

NJ Resident. REceived PA w2 from a single job. It apparently moved over my investments and other things and now its picking out a single stock trade to nitpick for the pa return?!

[JohnB5677]

Please clarify the situation.

I understand that you live in NJ.

You have a job in PA.

What is the connection between the stock and PA?

Stock, Interest & Dividends generally are taxed in your home state regardless of the location of the brokerage house or bank.

[chrisanthony13]

That's what I don't get. 

I'm guessing TurboTax moved my federal tax over for pa. But it's weird how it picked out a single trade I made of the many in my broker. I'm assuming I can delete the pa nonresident filing since I'm pretty sure my boss at this job paid taxes to NJ? I don't think he withheld taxes for pa but I'll ask. 

I'm wondering if this issue is only bc TurboTax tried to import my federal info and on top of that it auto imported from my broker before for federal 

[SweetieJean]

Did you work in Philadelphia?

[chrisanthony13]

No not in Philly. Turbo tax imported my federal and that's all I think why it's doing this. Why would I need to fill out a nonresident return in pa? I mean my W2 but isn't that tax for NJ? 

[SweetieJean]

If PA taxes were withheld, you would have to fill out a nonresident return in PA to get them back, since PA and NJ have a reciprocal agreement (which would not apply if you had worked in Philly).

[chrisanthony13]

Ok. I'll check. I didn't see anything in W2 saying which state got the tax. Also it's importing random things from my federal return. I should delete those parts right? I have no idea why it's calling attention to a single stock of all the trades I made. They wouldn't be part is the nonresident return. Nor should my k1. But it's trying to include it all. 

[RaifH · Accepted solution]

If your job is the sole source of PA income and your employer correctly withheld NJ taxes since NJ and PA have a reciprocal agreement, then you should not have to file a PA tax return at all. You can verify which state withheld taxes on your W-2 by looking at Boxes 15-17. If that is the case, in the My info tab, under Other state income, you can answer No to earning income in another state. You can then delete your PA nonresident return. 

If you are required to file a PA tax return, either because your employer withheld taxes in error or you have other sources of income that are PA sourced, like partnership income or a rental property, then only that PA sourced income should be taxed by PA. Any capital gains from stock trades should not be allocated to PA. If you only had your employment income because they withheld PA taxes in error, you should have $0 of PA income and receive a refund of the entire amount in Box 17 of your W-2. 

If your employer is withholding PA taxes, you will want to notify the payroll department to start withholding NJ taxes instead. It will save you a lot of trouble at tax time. 

[chrisanthony13]

I will check this tonight to verify. Thank you. I guess TurboTax is starting a pa return in error then? 

[ErnieS0]

TurboTax will move all your income to PA because it doesn't know what income is taxable to PA.

You need to go into the capital gains section of PA and make your stock sale non-taxable to PA.

1. Go to Gain and Loss Summary in Pennsylvania
2. Depending on how many entries you have, you will see a summary or individual screen
3. Click on each transaction
4. On Schedule of Gains/Losses check the box "This sale is not taxable in PA"

[chrisanthony13]

Well shouldn't I just delete the pa non resident state return it created since there is nothing taxable to pa?

[ErnieS0]

You may have to file a Pennsylvania nonresident return if you received a PA W-2.

Pennsylvania and New Jersey had a reciprocal agreement. A NJ resident working in PA should have NJ tax withheld.

If PA tax was withheld by mistake, the only way to get it back is to file a PA nonresident return and report $0 income.

Everyone is interpreting “NJ resident. Received PA w2 from a single job” to mean you lived in NJ for the whole year but worked one job in PA and had PA tax withheld from that job.

If that’s the case and you don’t want a PA refund, you can delete you PA nonresident return.

[chrisanthony13]

yeah i deleted the pa one since my w2 shows taxes for nj not pa. and nothing else was done in pa. it kept telling me i have to tho. i ignored it and submitted it all. I'm not so sure turbotax is worth the 140 bucks. lol. probably could have submitted my state return myself huh?