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February 4, 2024
Question

Live in NJ but work in PA - return is saying I owe NJ tax?

  • February 4, 2024
  • 1 reply
  • 0 views

HI

 

Live in NJ but income all earned in PA.  I did the PA Non-Resident return first and it says no refund or amount due but when I do my NJ return it says I owe $800?  I did not earn anything in NJ 

 

Not sure what I am doing wrong?

 

Thank you!

Tricia

 

    1 reply

    rjs
    Employee
    February 4, 2024

    New Jersey and Pennsylvania have a reciprocal agreement that applies to income reported on a W-2. Under the reciprocal agreement you pay tax only to the state that you live in. Your W-2 should not have any PA tax withheld. You should file only a NJ resident tax return, not a PA tax return.