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Old 02-23-2014, 01:09 PM
 
60 posts, read 90,173 times
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I recently filed my taxes and owe NJ $700. 2013 was my second year working in the city. However when I filed my 2012 taxes I didn't owe anything to nj, but actually received a refund. I noticed my 2013 w2 shows no nj withholdings.

Is this normal for no with holdings to show, when I've not changed anything?

Isn't there a NJ/PA tax deal? How do I prevent this in the future?

Thanks
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Old 02-23-2014, 09:01 PM
 
Location: Mount Laurel
4,187 posts, read 11,181,728 times
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Did you have withholdings for NJ tax in 2012? If you did, you shouldn't and probably the reason why you got a refund from NJ. You may not have changed anything but check with payroll department may have. They probably changed it for 2013 as it's typical not to whithold NJ or PA tax if you live in NJ but work in Philadelphia. The total amount you pay to Philadelphia is gone and never re-imburse. You can only get credit from NJ. For most earner, Philadelphia city wage tax will take care of NJ state tax.

As for filing NJ state tax, you need to put in the amount you paid to Philadelphia as credit paid to another jurisdiction.

Again, make sure you don't have any NJ or PA witholdings on your pay (New Jersey residents employed in Pennsylvania is not subject to Pennsylvania income tax). The only non Federal deduction should be Philadelphia city wage tax.

NJ Division of Taxation - Income Tax - Credit for Taxes Paid to Other Jurisdictions
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Old 02-24-2014, 08:33 AM
 
60 posts, read 90,173 times
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Quote:
Originally Posted by sj08054 View Post
Did you have withholdings for NJ tax in 2012? If you did, you shouldn't and probably the reason why you got a refund from NJ. You may not have changed anything but check with payroll department may have. They probably changed it for 2013 as it's typical not to whithold NJ or PA tax if you live in NJ but work in Philadelphia. The total amount you pay to Philadelphia is gone and never re-imburse. You can only get credit from NJ. For most earner, Philadelphia city wage tax will take care of NJ state tax.

As for filing NJ state tax, you need to put in the amount you paid to Philadelphia as credit paid to another jurisdiction.

Again, make sure you don't have any NJ or PA witholdings on your pay (New Jersey residents employed in Pennsylvania is not subject to Pennsylvania income tax). The only non Federal deduction should be Philadelphia city wage tax.

NJ Division of Taxation - Income Tax - Credit for Taxes Paid to Other Jurisdictions

Thanks for the reply.

So I'm clear with what you are saying. So It is normal to not have nj income tax taken out since i work in philly?
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Old 02-24-2014, 09:53 AM
 
Location: Mount Laurel
4,187 posts, read 11,181,728 times
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Quote:
Originally Posted by DonM77 View Post
Thanks for the reply.

So I'm clear with what you are saying. So It is normal to not have nj income tax taken out since i work in philly?
Correct. If your employer has your address as NJ, there will be no withholding for NJ or PA state tax. When you file your NJ tax, you are going to use the credit from tax paid to other jurisdiction (Philly city tax, not state). You will not have any credit for paid PA state tax because you shouldn't be paying them throughout the year. If you had your NJ state tax withheld, chances are you will get them back since Philadelphia city wage tax is most likely higher than your NJ state (in most cases). Just note that the max credit is what you a liable for, not what was paid to Philadelphia.
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Old 02-24-2014, 12:22 PM
 
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Philly Wage Tax refund info and form if you worked outside of Philly any days of the year:
City of Philadelphia: Refund Petitions
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Old 02-27-2014, 07:46 PM
 
60 posts, read 90,173 times
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Quote:
Originally Posted by sj08054 View Post
Correct. If your employer has your address as NJ, there will be no withholding for NJ or PA state tax. When you file your NJ tax, you are going to use the credit from tax paid to other jurisdiction (Philly city tax, not state). You will not have any credit for paid PA state tax because you shouldn't be paying them throughout the year. If you had your NJ state tax withheld, chances are you will get them back since Philadelphia city wage tax is most likely higher than your NJ state (in most cases). Just note that the max credit is what you a liable for, not what was paid to Philadelphia.
Well that clears everything up. Last question, do I have to file a PA return?
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Old 02-27-2014, 11:54 PM
 
Location: Mount Laurel
4,187 posts, read 11,181,728 times
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Quote:
Originally Posted by DonM77 View Post
Well that clears everything up. Last question, do I have to file a PA return?
Only if you had PA income tax withheld and you want to get a refund.
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Old 03-06-2014, 09:35 AM
 
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After doing some research I've read people adjust there withholdings to prevent double dipping. I'm not sure I completely understand all of it. In 2012 and 2013 I made roughly the same. However my refund for 2013 was roughly 60% less. I didn't own a home in either year(Rent) didn't claim a dependent either years. Not sure how I could have such a difference in refunds?

How do most people who live in NJ and work in PA/philly prevent double dipping?
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Old 03-06-2014, 01:54 PM
 
Location: Mount Laurel
4,187 posts, read 11,181,728 times
Reputation: 3507
Quote:
Originally Posted by DonM77 View Post
After doing some research I've read people adjust there withholdings to prevent double dipping. I'm not sure I completely understand all of it. In 2012 and 2013 I made roughly the same. However my refund for 2013 was roughly 60% less. I didn't own a home in either year(Rent) didn't claim a dependent either years. Not sure how I could have such a difference in refunds?

How do most people who live in NJ and work in PA/philly prevent double dipping?
Not sure what you mean by adjusting your withholdings to prevent "double dipping". You don't change to choose how much it's taken out of city was tax if you employer is in the city. It is deducted automatically at a fixed percentage.
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Old 02-11-2015, 07:59 AM
 
60 posts, read 90,173 times
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Last year I worked 10 months in philly two months in Delaware. Doing my own taxes using h&r online software is confusing since I worked in multiple states.

I've never owed NJ but this year the software has me owing 500 to nj. I made roughly the same as 2013. Either I'm doing something wrong or I actually owe nj. Which I can't understand how since my income didn't change much.
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