therlinger
Level 1

Taxpayer is full-year NJ resident but had a W-2 for wages earned in PA.  PA income and Philadelphia local taxes were withheld from employer.  I am filing a NJ resident tax return and PA-40 as a non-resident to get a refund of the PA income taxes withheld.  I am trying to get a credit for the local taxes paid to Philadelphia on the NJ return but the form will not populate.  I called Lacerte support and was told the Sch NJ-COJ will not populate as a credit for the local tax withheld is not applicable to compensation.  Is this correct or am I reading the instructions incorrectly because I think the taxpayer is allowed the credit.  Is there any form (NJ or PA) that should be filed with Philadelphia?  Thanks!

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