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Old 07-30-2013, 11:57 AM
 
5 posts, read 3,756 times
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Hi All,

I live and work in New Jersey and I'm holding a PA driver's license and my car was registered with a PA plate. The PA address I used to register my car is like a permanent address. I've been holding the driver's license for more than 1 year and working in NJ for more than 1 year. Is my situation illegal?

This April, I filed NJ tax because I thought driver's license didn't count and I actually didn't live in PA.

Please let me know what I should do now. I'm really anxious.

Thank you!
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Old 07-30-2013, 12:11 PM
 
2,535 posts, read 6,651,951 times
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NJ and PA have an exemption agreement. as long as you reside in PA(can prove this if you are one of the 1% of people that get audited) car registration, utility bill, et, anything to that address with your name on it. All you need to do is submit an exemption form. You still have to pay state income taxes to PA.

Here is a copy of the exemption form.

http://www.state.nj.us/treasury/taxa...rent/nj165.pdf

You really should hire an accountant. It's worth the money you are probably overpaying on your taxes in general.
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Old 07-30-2013, 12:16 PM
 
14,780 posts, read 43,574,370 times
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You can only legally reside/be a permanent resident of one state. In general the determination is made based on where you spend most of your time "living". In you case since you live and work in NJ chances are you meet all of the standards for being a resident of NJ and therefore pay taxes to NJ. So, in this case, you are fine when it comes to the taxes. You paid NJ just like you were supposed to and PA cannot come after you.

The issue with the license/registration/insurance though is most likely illegal. PA and NJ both have residency laws regarding driver's licenses, registration and insurance. You are blatantly in violation of those laws in both states and could result in fines and penalties if you are caught. If your auto insurance is also purchased through your PA address, you could be denied coverage in the event of a claim.

So, don't worry about your taxes, but you do need to get down to NJMVC as soon as you can and have your license and registration updated to reflect the fact that you live in NJ. You will also need to change your auto insurance as well.
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Old 07-30-2013, 12:18 PM
 
5 posts, read 3,756 times
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Quote:
Originally Posted by tdstyles View Post
NJ and PA have an exemption agreement. as long as you reside in PA(can prove this if you are one of the 1% of people that get audited) car registration, utility bill, et, anything to that address with your name on it. All you need to do is submit an exemption form. You still have to pay state income taxes to PA.

Here is a copy of the exemption form.

http://www.state.nj.us/treasury/taxa...rent/nj165.pdf

You really should hire an accountant. It's worth the money you are probably overpaying on your taxes in general.
Thank you very much!

I actually work in and live in NJ. I rented an apartment in New Jersey. So I think I'm a resident in NJ. I actually got my PA license after I started working in New Jersey.. I don't know whether it's illegal because I din't switch my PA license to NJ license.
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Old 07-30-2013, 12:20 PM
 
14,780 posts, read 43,574,370 times
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Quote:
Originally Posted by tdstyles View Post
NJ and PA have an exemption agreement. as long as you reside in PA(can prove this if you are one of the 1% of people that get audited) car registration, utility bill, et, anything to that address with your name on it. All you need to do is submit an exemption form. You still have to pay state income taxes to PA.

Here is a copy of the exemption form.

http://www.state.nj.us/treasury/taxa...rent/nj165.pdf

You really should hire an accountant. It's worth the money you are probably overpaying on your taxes in general.
Just clarification, unless the OP mistyped something they live in NJ...

Quote:
Hi All,

I live and work in New Jersey...
They just still have a PA driver's license and register their car in PA as they have some sort of address they are using for that purpose. Most likely because they were either too lazy to update it or are trying to keep their car insurance bills down.
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Old 07-30-2013, 12:20 PM
 
2,535 posts, read 6,651,951 times
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Quote:
Originally Posted by butlerain View Post
Thank you very much!

I actually work in and live in NJ. I rented an apartment in New Jersey. So I think I'm a resident in NJ. I actually got my PA license after I started working in New Jersey.. I don't know whether it's illegal because I din't switch my PA license to NJ license.
Thanks for the clarification. Then, yes you should pay nj income tax and get an NJ license ASAP. Just to reiterate you should be using a professional accountant to do your taxes.

PS Tax years run on a calender basis(Jan 1-Dec 31st). Did you live in NJ for all of 2012? if not when you moved may factor in to where you are required to pay tax.
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Old 07-30-2013, 12:21 PM
 
14,780 posts, read 43,574,370 times
Reputation: 14621
Quote:
Originally Posted by butlerain View Post
Thank you very much!

I actually work in and live in NJ. I rented an apartment in New Jersey. So I think I'm a resident in NJ. I actually got my PA license after I started working in New Jersey.. I don't know whether it's illegal because I din't switch my PA license to NJ license.
Like I said, you are fine on your taxes, but you are most certainly breaking the law when it comes to your license, registration and most likely your car insurance.
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Old 07-30-2013, 12:29 PM
 
5 posts, read 3,756 times
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Quote:
Originally Posted by NJGOAT View Post
Like I said, you are fine on your taxes, but you are most certainly breaking the law when it comes to your license, registration and most likely your car insurance.
Thanks a lot! That makes it a little easier for me. So when I go to the DMV to switch my license and plate and if they don't point out anything, then am I good? Hope there will not be any penalty or legal case...
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Old 07-30-2013, 12:31 PM
 
5 posts, read 3,756 times
Reputation: 10
Quote:
Originally Posted by tdstyles View Post
Thanks for the clarification. Then, yes you should pay nj income tax and get an NJ license ASAP. Just to reiterate you should be using a professional accountant to do your taxes.

PS Tax years run on a calender basis(Jan 1-Dec 31st). Did you live in NJ for all of 2012? if not when you moved may factor in to where you are required to pay tax.
Actually I did go to an accountant to file the tax return. But I didn't mention anything about my driver's license..
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Old 07-30-2013, 12:33 PM
 
2,535 posts, read 6,651,951 times
Reputation: 1603
Quote:
Originally Posted by butlerain View Post
Thanks a lot! That makes it a little easier for me. So when I go to the DMV to switch my license and plate and if they don't point out anything, then am I good? Hope there will not be any penalty or legal case...
LOL. This is the NJ DMV not the FBI. You will be fine. Tell them you just moved here and need to update your address from out of state.

Don't do this but in actuality you could keep driving with your current license and registration until you got pulled over and then you'd have a year from then to make the switch. We live n a world of 1s and 0s with no cross referencing between government databases so nothing is official until it gets recorded in the dmv computer. Now technically they could go after you for residency and prove you were here longer than a year already but again this is such a small infraction they never ever would.
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