Saturday, October 24, 2009

I live in NJ work in Philly Tax Credit?

If so how do I figure out how much of a credit?

I live in NJ work in Philly Tax Credit?
The people who posted the previous answers lived or worked in NY. NY does not have any reciprocal tax agreements. NJ and PA have a reciprocal tax agreement.





Do you really commute to Philadelphia from NJ everyday? You don't have an apartment in Philly?





As a NJ resident, you are exempt from PA state income taxes if your only source of income in PA is wages. However, if PA state taxes were withheld, you need to file a PA return to claim a refund. Since you were not liable for PA state taxes, you cannot claim a credit for having paid them.





Be careful if you are not having any NJ taxes withheld. You may have to make quarterly estimated tax payments to NJ to avoid getting hit with an underpayment penalty.





If you were asking specifically about Philly city taxes, I'm sorry I don't know how those work or whether you would be exempt.
Reply:Look in the NJ State tax forms and instructions. That information is in them.





You will also need to file a Pennsylvania return first so you know how much has been paid to the Commonwealth and City.
Reply:you best go to an acct for this, i live in NJ and work in NY and my acct figures it out based on the number i days i worked OUT of NY. PA taxes are deducted from your check, so you have to file NJ and PA state taxes as well as federal. its worth the 300 (or less) to just go to a CPA. and his/her fee is tax deductible


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