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February 9, 2021
Question

Okay, I worked in Philadelphia for 3 months in 2020 and lived in NJ. Am In supposed to fill out a tax credit for taxes paid to other states for Philadelphia?

  • February 9, 2021
  • 1 reply
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I worked in Philly from January to March.  I then had to work from home in NJ for the rest of the year.  Do I apply a tax credit for the taxes paid to the city of Philadelphia during those 3 months?  I didnt pay NJ state tax during those 3 months.  Is that normal?  Also what is Double-taxed income?

1 reply

February 9, 2021

If you were a resident of New Jersey while you were working in Philadelphia, that income is taxable by both New Jersey and Pennsylvania.  In order to prevent double taxation, you will receive a credit on your New Jersey resident tax return for the tax you paid to Pennsylvania.  You will need to file a full year resident tax return for New Jersey and non-resident return for Pennsylvania.  Prepare the Pennsylvania non-resident first in TurboTax.  If you paid, Philadelphia city tax, there is no credit or offset for that.

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FalconXAuthor
February 9, 2021

That doesnt make any sense.  Why would both NJ and PA double tax me for wages earned in PA?  On my W2 I only have NJ listed as my state.  Also how can I file a resident tax return for PA and a Non resident return for PA?