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Old 10-19-2007, 08:04 AM
3 posts, read 30,364 times
Reputation: 11


Here is the situation...
* I own a condo in New Jersey.
* I live with my boyfriend in PA.
* I just recently got a job in PA also.

Does it make sense to change my post office mailing address to PA?

Would that make me a PA resident?

How would this affect me in terms of money (taxes, DMV, insurance)?

I am currently in the 6.37% tax bracket in NJ.

PA has a flat personal tax rate of 3.07%, but they do not have exemptions or mortgage interest write-offs.

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Old 10-19-2007, 08:11 AM
Location: NJ
12,284 posts, read 30,246,639 times
Reputation: 5176
i'm not into pulling a fast one, so i'd change all my "stuff" to PA - less to worry about and keep track of.
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Old 10-19-2007, 12:02 PM
5,605 posts, read 12,391,914 times
Reputation: 8740
I believe you have to be a permanent resident i.e. PA driver's license, PA permanent address in order to take advantage of PA tax structure.

We have two homes, but can't take advantage of some of the exemptions in one, as we are part-time residents.
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Old 10-19-2007, 02:38 PM
Location: Montco PA
1,995 posts, read 3,869,437 times
Reputation: 1317
You basically have to make a "real" attempt at being a PA resident to make it kosher. This pretty much is the same for any state.

You'd probably save a little on insurance, very little on DMV, but a lot in income taxes, assuming your place in PA does not have a significant local income tax. The fact that PA does not allow deductions generally has little effect on income tax savings. The fact that the PA rate is a flat 3.07% can potentially save you big bucks if you are a high earner.

Do the math. If you make $75,001, which is the lowest NJ income amount in the 6.37% bracket, your NJ tax would be $4,778, assuming no deductions. In PA it would be $2,303. I was surprised to see that NJ does not have a graduated system; instead, every dollar of income in the 6.37% rate is taxed at that rate.

You would still be able to deduct property taxes paid on your condo in NJ on your Federal return even if you lived in PA.
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Old 09-06-2008, 09:23 AM
7 posts, read 26,465 times
Reputation: 10
I'm sort of in the same boat, work in NJ live in PA. Here's the question, come april whne you file the federal tax return, since you get a federal tax credit for the state taxes you already paid (not sure if the terminology is correct), does the state income tax really matter or is it a wash?
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Old 09-06-2008, 09:39 AM
7 posts, read 26,465 times
Reputation: 10
as it turns out my assumption was WRONG.... I thought you could deduct state taxes paid from your final federal tax bill... WRONG!!!

you can write them off your itemized expenses but it doesn't come out as a wash....
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