I am a self employed contractor residing in PA with most of my work in NJ, in which state do I report my income?

Forum|Forum|3 years ago
October 12, 2022
1 reply
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Best answer by vitopulito

the business is an electrical contractor that has generated 90% of his income in NJ and the 10% balance from work done in PA.

Again he is a PA resident all year. NJ & PA are reciprocal states does all the income get taxed in PA where he resides?

Not sure what more details do you need??

Thank you

T

Terry53029

Intuit Community Champion

Probable both, but would need to know all particulars to say for sure. You don't provide any details

V

vitopulitoAuthorAnswer

Level 3

the business is an electrical contractor that has generated 90% of his income in NJ and the 10% balance from work done in PA.

Again he is a PA resident all year. NJ & PA are reciprocal states does all the income get taxed in PA where he resides?

Not sure what more details do you need??

Thank you

T

Terry53029

Intuit Community Champion

Reciprocal states only matter for w2 employees where the NR state withholds resident state taxes. for a contractor that is self employed he will have to pay 100% of worldwide income to resident state, and will also pay taxes on amounts earned in any NR states he worked in. He should be able to claim a credit in his resident state for any taxes paid to NR states. This is the general rule, as each state has different rules, but in general a independent contractor working in a NR state should make estimated taxes to his home state, and any NR states he works in.

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