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.
Where do I attach my W-2 to NJ state tax return?
The amount of state withholdings you report on your New Jersey Income Tax return is shown in Box 17 of your W-2. Box 15 must also say “NJ” which indicates the withholdings were paid to New Jersey.
Do I need to attach my W-2 to my PA tax return?
PA-40 Schedule W-2S has been eliminated. All copies of Forms W-2, 1099-R, 1099-MISC, 1099-NEC and any other documents reporting compensation must be included with the tax return.
Do I need to file NJ tax return if I live in PA?
NJ and PA are reciprocal states and agree that you are taxed where you live, not where you work. You should not have to file a NJ return, unless NJ income tax was mistakenly withheld. However, if NJ tax was mistakenly withheld, you will file a NJ nonresident reciprocal return to have the taxes returned to you.
Where do I put w2 on PA tax return?
If you file by mail, you need to include your W-2 that includes the state of PA in box 15. The other W-2 for other states do not need to be included. If you efile your tax return you do not have to mail in anything.
What happens if you work in New Jersey and live in Pennsylvania?
If you live in Pennsylvania but work in New Jersey, you pay your tax to Pennsylvania where you live. New Jersey will not withhold any state money from your paycheck. They will of course continue to withhold federal taxes as required.
Why do I get two W2’s in PA?
With the passage of Pennsylvania Act 32 (effective January 1, 2012) the commonwealth, as an employer, withholds and remits local earned income taxes to a single tax collector for all municipalities except Philadelphia. The primary reason for receiving two Form W-2’s is moving into or out of Philadelphia or changing your work
Can a Pennsylvania employer withhold tax from New Jersey?
Second, your Pennsylvania employer needs to grant your request. If and only if both conditions are met, can you only have state tax withheld from New Jersey and not from Pennsylvania. (You’ll see the NJ instead of a PA in Box 15 of your Form W-2). Otherwise your employer is required by law to continue withholding Pennsylvania tax.
Can a state tax be sent on more than one form W2?
If you receive multiple Form W-2’s that are mailed separately, your state taxes will be on only one of your Form W-2’s. See question #1 in the FAQ section