NJ/PA

[MGC94]

Taxpayer moved from PA to NJ in June 2025

Taxpayer did not file REV-419

Taxpayer’s W-2 reflects all PA wages (Boxes 16–19).

Spouse’s W-2 reflects both PA and NJ wages.

Taxpayer Box 16 wages: $162,000 Taxpayer local wages (Box 18): $162,000 Taxpayer local tax (Box 19): $1,700

Spouse local wages (Box 18): $110,000 Spouse local tax (Box 19): $1,200

For the PA gross compensation worksheet, should I allocate the taxpayer’s Box 16 wages 50/50 ($81,000 for PA and $81,000 for NJ)?

For NJ credit purposes (NJCOJ)

Should the taxpayer’s local wages ($162,000) and local tax ($1,700) be split 50/50 since REV-419 was not filed?

For the spouse, since REV-419 was filed, should their local wages/taxes remain fully allocated to PA (i.e., no split and no NJ credit)?

For dividends and capital gains during the year of the move

Is a 50/50 allocation acceptable for part-year residency?

Or is it necessary to allocate based on actual transaction dates (pre- vs. post-move) because that seems like it would talk hours based on the number of sales and dividends

Thank you for your help   

[Skylane]

The tax home changed in June, so part year PA and Part year NJ. Because of reciprocity, 1st 6 months income goes to PA… 2nd 6 months to NJ.

Allocate int and div same way… according to where they lived….6 months/6 months 

NJ COJ should only contemplate 6 months of PA local taxes.

id break it down on a piece of paper before trying to make the worksheets make sense… 

Hint:  on NJ return, you can drill down on the wages line twice to get to a super secret worksheet to allocate state wages

[MGC94]

So you can 

Allocate int and div same way… according to where they lived….6 months/6 months 

Instead of by the date? 

[sjrcpa]

If you have the actual dates when the income was earned that is the correct way to allocate the income.

[Skylane]

@sjrcpa  is correct... 

if it's fairly even distributions through the year, I generally divide the total by 12 and multiply x no of months in each state.... no one has ever complained. 

Edit: by number of days in each state… is better… by actual distribution while living in each state … most correct…. Probably won’t make much difference in the tax any way you do it