Is there a reciprocal agreement between NJ and PA?

New Jersey and Pennsylvania have a reciprocal agreement. Compensation paid to New Jersey residents employed in Pennsylvania is not subject to Pennsylvania income tax. Compensation means salaries, wages, tips, fees, commissions, bonuses, and other remuneration received for services rendered as an employee.

Can I use parents address for taxes?

If your parents’ address is your preferred mailing address, use it. You can use any address that you wish on your tax return. Your parents probably file Married Filing Jointly. Married filers can’t file as Head of Household.

What determines your state of residence for tax purposes?

Often, a major determinant of an individual’s status as a resident for income tax purposes is whether he or she is domiciled or maintains an abode in the state and are “present” in the state for 183 days or more (one-half of the tax year). California, Massachusetts, New Jersey and New York are particularly aggressive …

Do I pay taxes based on where I live or work?

Your income tax liability may change based on the state you’re in, but you should expect to file taxes for both states: one return as a resident for the state where you live and a separate return as a nonresident for the state where you work. Learn more about filing taxes as a remote employee.

What happens if you live in NJ and work in PA?

If you lived in NJ the entire tax year, and worked in PA, your W-2 wages are not subject to PA taxes. For tax purposes, your PA wages are considered NJ income, and are fully taxable by NJ.

Can you live in PA and work for the state of NJ?

You’re correct, NJ and PA do have tax reciprocity for W-2 wages. If your only income from NJ was W-2 wages, you do not have to file a NJ tax return. That income is taxable only by your home state of PA.

Can you have a mailing address and live somewhere else?

Yes, as long as there is mail delivery to both places and they have mailboxes. It helps if your name is on the mailbox and the mail must be addressed to that place.

Is Pennsylvania local tax based on where you live or work?

PA Resident Employees. The EIT tax is assessed by the city, township, or borough (political subdivision) where the employee’s residence is located (for PA resident employees) and withheld and paid by the employer to the employee’s designated residence tax collector quarterly (“resident municipality”).

Can I live in NJ but work in PA?

Live in NJ but work in PA. Do I need to fill a tax return for PA? PA and NJ have tax reciprocity with regard to W-2 wages. If you lived in NJ the entire tax year, and worked in PA, your W-2 wages are not subject to PA taxes. For tax purposes, your PA wages are considered NJ income, and are fully taxable by NJ.

Is PA income taxable in New Jersey?

For tax purposes, your PA wages are considered NJ income, and are fully taxable by NJ. If this is your situation, you would answer No in the Personal Info section of TT to the question about having Other State Income.

Do I pay non-resident income tax if I live in another state?

The easy rule is that you must pay non-resident income taxes for the state in which you work and resident income taxes for the state in which you live, while filing income tax returns for both states. However, this general rule has several exceptions. One exception occurs when one state does not impose income…

Do Pa and NJ have tax reciprocity for W-2 wages?

June 5, 2019 11:57 AM You’re correct, NJ and PA do have tax reciprocity for W-2 wages. If your only income from NJ was W-2 wages, you do not have to file a NJ tax return. That income is taxable only by your home state of PA.