NJ Resident, Works Part-Time in PA — Do I Need to File PA Taxes?

Hi, I have a question about state tax filing for NJ and PA.
We live in New Jersey
, and my wife works in Pennsylvania
— she goes to the PA office about 2 days a week
. I know NJ and PA have a reciprocity agreement
, so we weren’t sure if we need to file a PA return. But her W-2 shows both NJ and PA taxes
withheld.
On the second page of her W-2 (which is mostly blank except for a few fields), we see:
Box 14
:- LST 52
- PASUI 179.39
Box 18
: 247,742.72Box 19
: 2,477.49Box 20
: 461801-67
When uploading to FreeTaxUSA, both pages of the W-2 got combined into one screen. These boxes (14, 18, 19, 20) were only filled on page 2
, and seem to relate to PA.
Here’s what I entered in the “
Your Taxes Paid to Another State
”
screen in FreeTaxUSA:
1.For “
Enter the New Jersey income you received that was taxed by both New Jersey and Pennsylvania
:”
→ I entered the amount from Box 18
($247,742.72). Is that correct?
2. For “Enter the amount of tax you paid to Pennsylvania on the above income:”
→ I entered the amount from Box 19
($2,477.49). Is that correct?
3. Enter the amount of tax withheld as shown on your Pennsylvania return:
→ I left this blank
because I’m not sure where to find this. If something needs to be entered, where can I find it?
Questions:
- Do I still need to file a
PA return
, or does reciprocity mean I can just file in NJ? - If yes,
did I enter the correct info
above in the tax credit screen? - What do I do with
local taxes
shown inBox 14
(LST and PASUI)? - Where in FreeTaxUSA should I enter those, if needed?
- Is there a step-by-step guide for handling NJ/PA reciprocity situations like this?
Thanks in advance!
Comments
-
Hello,
While there is a reciprocal agreement between the two states, the agreement doesn't apply to municipalities. From what I can see, you can claim the credit for taxes paid based on the local tax amounts in boxes 18-20.
If you have already filed the return, you would need to amend. To claim the credit, follow these steps:
- After starting the amended return, click State TAB > Click on Philadelphia Tax > answer yes to the question on the basis that it was another PA municipality > click Save and Continue
- Answer yes that you had taxes withheld from your wages > Click Save and Continue
- Click +Add a State > Choose "Other" from the list > enter the code from box 20 of your W-2 > click Save and Continue
- Enter the amount from box 18 as the income taxed by both NJ and the PA school district
- Enter the amount from box 19 in the tax you paid and the tax withheld lines > Click Save and Continue
Then go ahead and submit the NJ return.
Thanks for using the FreeTaxUSA Community
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