NJ/PA TAX PREPARERS HELP NEEDED

[DEO]

I will appreciate any help. I am a NY preparer, doing a NJ resident who worked in PA.

Client worked in Philadelphia for two different employers. Philadelphia tax was deducted from one employer and PA tax was deducted.

What forms are used for PA to get the credit for taxes paid to other jurisdiction. Does PA have a reciprocal aggreement with NJ.

Thanks in advance

Deo

[jklcpa]

From the NJ1040 instructions (search for word 'reciprocal'): PA has reciprocal agreement with NJ. NJ resident would file PA nonresident individual return, show wages as nontaxable in PA, request refund of all PA withholding. Do not claim credit for taxes paid to other states (for the PA w/h) on the NJ resident return, since ultimately no tax liability exists in PA.

NJ resident should also complete REV-420 (PA Employee's Statement of Nonresidence in Penns and Authorization to Withhold Other State's Income Tax) and give to their PA employers to stop the PA withholding.

Sorry I don't know about Phila local issue.

Hope this helps,

Judy