I and my husband live in PA. I worked all year in PA, but my husband worked in New Jersey

Forum|Forum|2 years ago
April 3, 2024
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I and my husband live in PA. I worked all year in PA, but my husband worked in New Jersey. His employer withheld his New Jersey state taxes, so now my husband will have to file his NJ taxes even though we live in PA. Is it correct that we fill out the federal and PA state taxes together and he fills out the NJ state taxes as married and filing separately? Also, in the PA taxes option it says Any special Pennsylvania W-2 situations? We select the options *You earned income in another state.* and *You were a resident of PA working in another state or country and your employer did not withhold PA income tax.* Are these the correct options and what should we put in (form or schedule to which this statement relates) and (statement information)?

Best answer by Vanessa A

Are you seeing these statements in the PA return? What did you select in the federal section?

When you file his NJ return, you will enter his wages as $0 but leave the amount of taxes withheld as they are. PA and NJ have reciprocal agreements meaning you only pay taxes in the state you live in, not the state you work in. You will then include all of his income on your PA return. This will likely leaving you owe PA state taxes, but you should get a full refund from NJ.

This should be also be updated with his employer so they only withhold PA taxes.

Vanessa AAnswer

Are you seeing these statements in the PA return? What did you select in the federal section?

This should be also be updated with his employer so they only withhold PA taxes.

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ermatiasfrancoAuthor

Also, in the PA taxes option it says Any special Pennsylvania W-2 situations? We select the options *You earned income in another state.* and *You were a resident of PA working in another state or country and your employer did not withhold PA income tax.* Are these the correct options and what should we put in (form or schedule to which this statement relates) and (statement information)?. Thank you

Vanessa A

You do not really need to select that you were a resident of PA working in another state as NJ income is taxed as PA income. Basically, the only issue is the employer did not withhold for the correct state.

You would not be entitled to any credits for taxes paid to another state, so select that you were a resident of PA working in another state or country and your employer did not withhold PA income tax may or may not apply.

When I create a PA/NJ return and go through the questions I am not seeing this particular question or answers. I do get one statement that says "based on what we know from your federal return, in addition to making money in PA, you also made money in NJ" This money gets taxed twice by both PA and the other state, but don't worry if you see double taxed income as you go through your PA return. Later on we'll help you get a credit that offsets paying double taxes"

Can you provide more detail on where you are seeing this?

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