What if I'm a Pennsylvania resident employed in New Jersey?
Nonresidents of New Jersey:
As a result
of the Reciprocal Personal Income Tax
Agreement between Pennsylvania and New Jersey,
compensation paid to Pennsylvania
residents employed in New Jersey is not
subject to New Jersey income tax. Compensation
means salaries, wages, tips,
fees, commissions, bonuses, and other
payments received for services rendered
as an employee.
If New Jersey income tax was withheld from your wages, you must file a New Jersey nonresident return to obtain a refund. To stop the withholding of New Jersey income tax, complete a New Jersey Employee's Certificate of Nonresidence in New Jersey (Form NJ-165) and give it to your employer. The Reciprocal Agreement covers compensation only. If you are self-employed or receive other income (for example, gain from sale of property) which is taxable in both states, you must file a New Jersey nonresident return and report the income received.
If you're a resident of Pennsylvania and your employee compensation (wages) came from New Jersey sources, don't include any of these wages under the "New Jersey Amount" on this screen.
Part-Year Residents of New Jersey: Include all employee compensation you earned while you were a New Jersey resident under the "New Jersey Amount".
If New Jersey income tax was withheld from your wages, you must file a New Jersey nonresident return to obtain a refund. To stop the withholding of New Jersey income tax, complete a New Jersey Employee's Certificate of Nonresidence in New Jersey (Form NJ-165) and give it to your employer. The Reciprocal Agreement covers compensation only. If you are self-employed or receive other income (for example, gain from sale of property) which is taxable in both states, you must file a New Jersey nonresident return and report the income received.
If you're a resident of Pennsylvania and your employee compensation (wages) came from New Jersey sources, don't include any of these wages under the "New Jersey Amount" on this screen.
Part-Year Residents of New Jersey: Include all employee compensation you earned while you were a New Jersey resident under the "New Jersey Amount".
