Anyone work in PA but live in NJ? (or vice versa, I suppose)
sheanimal finally landed a sweet new job after an extended period of unemployment. The new job is in Allentown, PA, though (which isn't that bad of a commute from Alpha... beats heading east in the morning, anyway).
From what I understand, she will need to deduct both NJ and PA state income taxes from her payroll checks, but will eventually be refunded the money that she pays to PA, but not until August or so. Does anyone know of a way around this? It seems ridiculous to give PA a couple/few thousand in zero-interest loans when the money is just going to be returned anyway.
ianimal No way around it that I know of. My dad had to do it for a few years when he got transferred from a Morristown office to a Philly one. That was always his big complaint too.
Trying to Help 
Calico696 Ianimal ~ hope this helps:
New Jersey / Pennsylvania Reciprical Tax Agreement
http://www.state.nj.us/treasury/taxation/njit25.shtml
JrzyGirl88 
Rebecka Rebecka, if/when we ever have kids, they will be known on here as the "weeanimals" (-;
PREDATOR Your welcome! Hope it gives you what you need. Sorry for the typo it should be Reciprocal not Reciprical..
"if/when we ever have kids" ianimal
You know you just jinxed yourself right?
When we bought a house my MIL said "new house new baby" It happened.
When I got a new job MIL said" new job another baby":. Then I decided not to work and no new houses.....LOL!
Good Luck with that sheanimal.
Christine I work in PA. PA and NJ have a reciprocal agreement to not double tax each other. I pay NJ income taxes only. I have to double check but I think I pay PA unemployment insurance instead of NJ unemployment (so if I were to get laid off, I think would have to file with PA unemployment but don't quote me on that part.)
One thing to watch for is that, at least in the Lehigh Valley area, you have to pay a 1% local PA municipality income tax. You claim this tax as a tax CREDIT on your NJ tax return. You get 100% of it back. I've been doing it for the past 7 years and so far the man hasn't come knockin'. LOL! Actually, I use Turbo Tax and they allow it so I guess it's OK, right?
emaxxman I just read the link that jrzygirl posted. Interesting. I don't understand why an employer would deduct both given the agreement. My company is headquartered in Short Hills and I work in Center Valley, PA. I do not get any PA state taxes deducted.
I have PA employees, and they just file that one form with me and it's done. In the past they've threatened to do away with that, but at least at the moment you don't have to go through it.
GC I've worked both ways, worked in NJ/ lived in PA and lived in NJ/worked in PA. (I know, crazy!) I only ever had 1 income tax deducted, for the state that I lived in at the time. She shouldn't have any problems with this. The city of Easton now charges residents and non-residents that work in the city the 1%, but I don't think Allentown does that so she should get that all back.. Good luck to her in her new job!!! Hope she can avoid the airport area of 22 at rush hour.
bac I work in Easton, live in NJ and mine works out the same as it does for emaxxman. I also use a professional tax preparer ... it's worth the money. She even tells me how much I can deduct for cell phone use for work related calls.
Andy Loigu Commenting is no longer available.