Remote worker in NJ and box 16 state wage amount

Forum|Forum|2 years ago
February 23, 2024
2 replies
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Hello,
I am a remote worker who lives in NJ and my employer is in PA.
I get the following prompt for NJ taxes.

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

Thanks.

TurboTax PLUS Online

Best answer by JotikaT2

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.

AmyC

Employee

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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