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

tb001
tb001 Member Posts: 9 Newcomer
in Filing my 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: 247,742.72
  • Box 19: 2,477.49
  • Box 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 in Box 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!

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