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February 5, 2020
Question

I live in NJ but work in PA. My only income comes from PA. From what I understand, Pa and Nj have a reciprocity agreement so do I still need to file as a nonresident for Pa

  • February 5, 2020
  • 2 replies
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2 replies

February 5, 2020

No, as long as your employer has only withheld state tax from your resident state of New Jersey, you don't need to file a Pennsylvania return.

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March 21, 2020

i live in nj work in Philadelphia. the w2 shows taxes withheld in PA not NJ. Do i have to file a PA and New Jersey return?

Also i do not see any mention in the rey=turn regarding Philadelphia wage tax (which witholding was taken out)

March 21, 2020

Yes, if you did not tell your employer to withhold NJ tax instead of PA, you will have to file a nonresident Pennsylvania return and a New Jersey Resident return.  Because of the reciprocity agreement, you can choose to file zero income for PA to get a full refund of withholding OR nonresident with PA source income and get the credit for taxes paid to another state on NJ resident return.  

March 22, 2020

thank you - one more question 

they withheld Philadelphia wage tax - do I owe this?