If a Taxpayer who is a Resident of New Jersey but work's in Pennsylvania, and the employer withheld Pennsylvania income tax from the taxpayers wages, what is impact for the New Jersey Tax Liability? Per the New Jersey Division of Taxation, "as a result of the Reciprocal Personal Income Tax Agreement between the State of New Jersey and the Commonwealth of Pennsylvania, New Jersey residents who receive compensation from Pennsylvania sources are not subject to Pennsylvania income tax on those earnings. If you are a New Jersey resident and Pennsylvania income tax was withheld from wages you earned there, you must file a Pennsylvania return to obtain a refund.
One option available to the taxpayer "is to stop the withholding of Pennsylvania income tax, and this can be accomplished by completing Form REV-419, Employee’s Nonwithholding Application Certificate, and give it to taxpayers employer. "
"Taxpayers who need more information on this matter can access this details on the Pennsylvania Department of Revenue Web site or by calling 1-717-787-8210." |