New Jersey resident working in Philadelphia. I have a W2 and 1099 Misc.

Forum|Forum|7 years ago
June 3, 2019
2 replies
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My employer sent me three W2's: one federal, one state (NJ), and one local (Philadelphia). Boxes 15-20 are filled out differently on all 3 W2's. On Federal W2, box 15 (state) is blank; State ID No says "total state", Box 16 (state wages) is blank, Box 17 (state income tax) has a number, Box 18 (local wages) has a number, Box 19 (local income tax) has a number), and Box 20 (locality name) says Philadelphia. My State (NJ) and Local (Philadelphia) W2's have different boxes filled out and empty, with the same information. I'm not sure how to fill this into the state and local sections of my Federal return. Thank you.

TurboTax Self Employed Online

DanielV01

Employee

Treat the different lines as one W-2. What you will do is enter the Federal portion as normal from the Federal portion, then enter the NJ state information (NJ should have information on boxes 15-17) under State Information, and then the Philadelphia information (boxes 18-20) on the Local Wage information. You will say that the local wage information is associated with Pennsylvania.

Entering this information correctly will assist you with your NJ return. You are taxed in NJ for your income (because you live there), and in Philadelphia (because you work there), and NJ will give you a credit for the tax you pay to Philly on that income also. (Not all states give a credit for taxes paid to a locality, but NJ does).

You didn't ask a question about the 1099-Misc. If you had a question or wanted to provide additional information, feel free to comment so that we can fully assist you.

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S

sjmanoushAuthor

Employee

So, on my PA return (which I am filling as a non-resident), when it pulls my W-2 information from Federal, my employer's state ID is listed as NJ.... although I work in PA. And the taxable income is blank/zero. This is OK? As far as my 1099, this is being treated as a schedule C business on my PA return. (Net income from this work is actually negative after accounting for expenses.) Either way, am I reporting this as PA income or NJ income (this work was also done in Philadelphia)... should I be paying PA/Philly taxes on this or NJ taxes? Finally, on my PA return, on one of the last screens, "Special PA W2 situations", should I be clicking on the box that says "you earned income in another state"? Thank you very much.