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February 3, 2025
Question

If I live in NJ but work in PA do I need to file a PA state return? My W2 does not indicate state wages/taxes for PA but it does say local taxes were paid to PA

  • February 3, 2025
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    1 reply

    February 3, 2025

    No, you do not.  PA and NJ have a tax reciprocity agreement, meaning if you live in one state and work in the other state, you only have to file a tax return and pay taxes for the state you live in. 
     

    This applies to the state return.  You will need to contact the local taxing authority for the local taxes as each jurisdiction has different rule and TurboTax does not support local taxes for NJ or PA.

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    Employee
    February 3, 2025

    With regard to the PA local taxes, you may claim a credit on your NJ tax return for any local taxes you pay to municipalities in Pennsylvania.  See this:

    https://www.nj.gov/treasury/taxation/njit14.shtml#:~:text=The%20New%20Jersey%2FPennsylvania%20Reciprocal,the%20taxes%20paid%20to%20Philadelphia.

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