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Remote worker in NJ and box 16 state wage amount

Hello,
I am a remote worker who lives in NJ and my employer is in PA.
I get the following prompt  for NJ taxes.

 

Screenshot 2024-02-23 at 9.28.29 AM.png

Should I select the "Remove These wages" or ignore it ?

 

Thanks.

 

 

 

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1 Best answer

Accepted Solutions
JotikaT2
Employee Tax Expert

Remote worker in NJ and box 16 state wage amount

Since your employer has listed your wages as New Jersey sourced on your W-2 form, your wages are being correctly reported since you do reside within a state that has a reciprocity agreement as stated by Amy above.  

 

Therefore, you do not need to select "remove these wages" as they need to be reported on your New Jersey resident income tax return.

 

I do suggest reviewing your W-2 form to confirm that none of your states wages were reported under boxes 15, 16, and 17 as being sourced to Pennsylvania. As long as that is correct, you do not have any Pennsylvania sourced income or withholdings and are not required to file a nonresident Pennsylvania return.

 

 

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3 Replies
AmyC
Employee Tax Expert

Remote worker in NJ and box 16 state wage amount

It depends on what you have listed already.

 

My first question is did you have PA tax withheld? If not, there is no need to file a PA return since NJ and PA are reciprocal states. See Which states have reciprocal agreements? and fill out the necessary form to give your employer so this is not a further issue and ask them to correct the taxes for this year.

 

If you have PA tax withheld, then you need to file the PA return with the PA wages. You will claim no PA wages and get a refund. Then all of NJ income is taxable to NJ. I am not sure what you have entered where so you will need to review that your NJ return is capturing all income but not doubling it by adding PA income as well.

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Remote worker in NJ and box 16 state wage amount

My employer has NJ state ID.  And I am a full time remote employee.
I have never paid PA taxes in the last few years.

 

JotikaT2
Employee Tax Expert

Remote worker in NJ and box 16 state wage amount

Since your employer has listed your wages as New Jersey sourced on your W-2 form, your wages are being correctly reported since you do reside within a state that has a reciprocity agreement as stated by Amy above.  

 

Therefore, you do not need to select "remove these wages" as they need to be reported on your New Jersey resident income tax return.

 

I do suggest reviewing your W-2 form to confirm that none of your states wages were reported under boxes 15, 16, and 17 as being sourced to Pennsylvania. As long as that is correct, you do not have any Pennsylvania sourced income or withholdings and are not required to file a nonresident Pennsylvania return.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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