therlinger
Level 1
10-10-2024
10:06 AM
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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!