Live in PA work in NJ

abelluck
abelluck Member Posts: 1 Newcomer
in State Filing

Hello,

I live in PA but work in NJ. Do I need to report my income on my PA state return? When I do not, I get a notification at the end that I should be reporting all income I made while living in PA. But when I do report it, it is taxed in both PA and NJ, and the button to report income taxed in two states is grayed out.

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Answers

  • KeriC
    KeriC FreeTaxUSA Agent Posts: 186

    Hi @abelluck

     Your resident state will always tax you on income earned while a resident of the state, even if the income is earned in another state. However, your resident state will also allow you to claim a credit for taxes paid to another state so that your wages are not double taxed.

     You will first want to complete your NJ tax return in the software. After you have prepared your NJ return, you will then want to go to your PA return and select State > Taxes Paid to Another State to add information regarding the taxes paid to NJ.

     If the option to select "Taxes Paid to Another State" is grayed out and isn't allowing you to select it, you may need to continue through the preceding pages before you will be able to select it. If additional questions arise, please feel free to contact Support from within your account. They will be able to view your specific tax information and can more precisely guide you in the software.

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