I live in New Jersey, and work in Philadelphia. I'm having no state withheld from my check. What do I do?
I moved to NJ in January, and now I'm getting paid more. Doesn't make sense, and my employer has no clue what is going on. I'm going to get nailed at the end of year...I know it. What can I do? Ok, so Doctor Deth really helped me out. However, does this mean that I will not have any state withholding removed at all? Either from PA or NJ?
United States - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Have the employer start taking it out now and let them take out an extra $10 a pay period to make up for what you haven't had withheld so far.
2 :
New Jersey and Phila/PA have what is called a reciprocal tax agreement - you can claim the phila wage taxes you pay on your NJ tax return - they are treated the same as if they were NJ state taxes withheld - you still might not get enough withheld to fully cover your NJ taxes, so put aside an extra 1-2% of your pay just in case - come tax return time
3 :
You need to tell your employer that they need to be withholding NJ state taxes from your check. If for any reason they give you a hard time about it, call the NJ Department of Taxation and let them know your employer is refusing to withhold. If your move was effective Jan 1 - You won't end up paying to PA due to the reciprocal agreement, just the state you live in. That is all the reciprocal is, you pay and file in the state you live in not where you work. HOWEVER, say you moved Jan 15th = = you will file your tax return for part-year PA (Jan 1 - 14) and part-year NJ (Jan 15 - Dec 31). You do need to get this straightened out and your employer should do this correctly. Absolute worst-case scenario - have them withhold PA taxes, you will have to file returns in both states and you'll get a refund from PA and have to pay into NJ.
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