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February 4, 2025
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Lived in NJ, received W2-G from PA

  • February 4, 2025
  • 1 reply
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Lived in NJ, got some gambling winnings (W2-G) from PA. 

Do I have to pay state taxes to PA, NJ or both?

 

Best answer by NicolleR1

You will need to pay taxes on both states. When you have income from multiple states you will pay taxes on all income received from all sourced in your state of residence, and then on the state that was received from. Some states have what is called reciprocity agreements, which allows you to claim a credit in your state of residency for taxes paid to another state. New Jersey and Pennsylvania have this agreement and you should be able to claim a credit in your NJ return for the taxes paid in PA. 

The software will do most of the work for you, as long as you input all the information correct, and it will allocate the credit to the correct state. Its is recommended that you start working on your nonresident return first for the software to credit you on the resident one. 

If you need further assistance completing those or have any questions you can reply to this thread 

1 reply

NicolleR1Answer
February 4, 2025

You will need to pay taxes on both states. When you have income from multiple states you will pay taxes on all income received from all sourced in your state of residence, and then on the state that was received from. Some states have what is called reciprocity agreements, which allows you to claim a credit in your state of residency for taxes paid to another state. New Jersey and Pennsylvania have this agreement and you should be able to claim a credit in your NJ return for the taxes paid in PA. 

The software will do most of the work for you, as long as you input all the information correct, and it will allocate the credit to the correct state. Its is recommended that you start working on your nonresident return first for the software to credit you on the resident one. 

If you need further assistance completing those or have any questions you can reply to this thread