Different State Wages

[Jerry C]

I have a couple who live in New Jersey and Work in Penna. The Penna employer only takes out Penna State Income Taxes. So, I file Penna State tax returns for the Penna wages and I should be able to File NJ Wages on the NJ State Tax return. I had no problem segregating the wages last year but the software will not allow me this year. When I try to separate state wages on the NJ Tax Return, I am getting an error.( I am not having the issue on my Penna State Tax Return, only NJ Return). If this stands, I will try to force the electronic filing. 

Help!!  Is there a solution I'm not seeing.  

[itonewbie]

If your client was a resident of NJ but worked in PA, the reciprocal agreement would have your client's wage subject to tax only in the resident state of NJ and exempt from PA tax.  The PA employer should have withheld NJ taxes instead.  What you should do is to file a PA return to claim a full refund on the PA SIT.  Your client will need to report the wages in full to NJ and have a balance due.

To avoid this problem in 2022, your client should complete an REV-419 and submit it to the PA employer so that proper reporting/withholding will be done going forward.

[Jerry C]

I am filing a Penna Return (non-resident), but only included Penna wages and the State Liability equaled the Pa state income tax withheld.

So you are saying to file a PA return, exclude 100% of all wages in total ( I'm not sure how to do that- or not show on the return) and get the full refund of PA SIT and then show 100% of all wages on the NJ Return and owe... Correct?

[itonewbie · Accepted solution]

You understand what I stated correctly.  You may refer to this thread for the mechanics of how you could get that done:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/nj-resident-worked-in-p...

[Jerry C]

Thank you!!!  I will try