I live in NJ, work in PA and my employer deducted PA State Tax

Forum|Forum|2 years ago
January 24, 2024
2 replies
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Greetings:
I live in NJ and work in PA. When I started working there early last year, my employer refused to take out NJ State taxes and told me I had to pay PA State taxes. Now I'm doing my 2023 Tax Return and TT is showing a huge refund due from PA and an equally huge "taxes due" for NJ. Do I have to file a PA Return to get a refund and then file a NJ Return to pay them??

Thanks!

TurboTax Home & Biz Windows

Best answer by TomD8

"Do I have to file a PA Return to get a refund and then file a NJ Return to pay them??"

Unfortunately yes, that's exactly what you have to do. And no, there is no "other state credit" to be claimed. That's because you actually owe no taxes to PA on your W-2 income.

You should also file PA Form REV-419 with your employer ASAP, to get them to cease the PA withholding. Here's a link to that form:

Employee's Nonwithholding Application Certificate (REV-419) (pa.gov)

ee-ea

Employee

Do I have to file a PA Return to get a refund and then file a NJ Return to pay them?

You do!

Be sure to take credit on your resident return for the taxes paid to the nonresident state.

dpvitt249Author

Please clarify....

" Do I have to file a PA Return to get a refund and then file a NJ Return to pay them?

You do! Be sure to take credit on your resident return for the taxes paid to the nonresident state."

I will file a PA State Tax return and expect a full refund of the PA State Taxes paid. I don't understand the statement "Be sure to take credit on your resident return...". Don't I need to pay the full amount to NJ (including the State Taxes I paid to PA)?? Why am I taking a credit if I'm expecting reimbursement from PA? It would be ideal if I didn't have to wait for the PA refund to pay NJ and TT would handle the refund / credit!

ee-ea

Employee

My error. The sentence is nearly standard in two state situations.

TomD8Answer

Employee

"Do I have to file a PA Return to get a refund and then file a NJ Return to pay them??"

Unfortunately yes, that's exactly what you have to do. And no, there is no "other state credit" to be claimed. That's because you actually owe no taxes to PA on your W-2 income.

You should also file PA Form REV-419 with your employer ASAP, to get them to cease the PA withholding. Here's a link to that form:

Employee's Nonwithholding Application Certificate (REV-419) (pa.gov)

**Answers are correct to the best of my ability but do not constitute tax or legal advice.