PA Tax withheld by NJ

Forum|Forum|5 years ago
August 18, 2020
4 replies
20 views

I have a client who worked in Philly and came in with a W2 with NJ withholding and Philly city tax withheld. I understand there is a reciprocal agreement but any NJ/PA folks out there with any friendly advice on how this works?

My thought is that I need to do a NJ return to get the witholding back and then a PA return without the withholding....

Apologies, don't see many NJ/PA returns out west.

ProSeries Professional

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Best answer by sjrcpa

If she never lived in NJ, then Yes NJ nonresident return to get the withholding back.

Part year PA return where she will pay tax, plus interest and penalty.

sjrcpa

Level 15

Where does your client live?

Philly tax is a done deal. If you work in Philly you pay Philly tax. No Philly return needs to be filed if correct withholding was done.

The more I know the more I don’t know.

J

jw-rogersAuthor

Level 3

@sjrcpa She lived in Philly for 5 months, then in the suburbs for a month an then moved out here.

The W2 has NJ and Philly City tax even though she lived in Philly. So I'm guessing I do a zero withholding PA return and a NJ return with zero to get the funds back?

I've seen this a few times with remote workers but this is the first with the reciprocal agreement.

sjrcpaAnswer

Level 15

If she never lived in NJ, then Yes NJ nonresident return to get the withholding back.

Part year PA return where she will pay tax, plus interest and penalty.

The more I know the more I don’t know.

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