New Jersey has long maintained a reciprocal agreement with neighboring Pennsylvania that lets commuters and telecommuters in each state pay income taxes where they live and not where their companies are based.

Does NJ have convenience rule?

The ‘convenience’ rule States have also established reciprocity agreements to prevent income from being taxed twice. New Jersey and Pennsylvania have such a pact.

What happens if you work in New Jersey and live in Pennsylvania?

If you live in Pennsylvania but work in New Jersey, you pay your tax to Pennsylvania where you live. New Jersey will not withhold any state money from your paycheck. They will of course continue to withhold federal taxes as required.

Do you have to pay New York taxes if you live in NJ?

Great news for you, no! You do not have to pay double taxes. However, if you want to avoid paying more than you owe, it is vital that you file your New York return first so that when you file in New Jersey, you will receive a tax credit for any taxes you already paid. This will prevent you from being taxed on the same income by both States.

What to do if you have no NJ tax return?

If you can, go back into TurboTax, under the state taxes tab and delete NJ from your list of state returns. If not just don’t file the NJ state tax return. If you purchased an NJ state income tax return in error, you will need to contact customer support to request a refund. Start by signing in to your account (if you aren’t already).

Can you live in New Jersey and work in NYC?

New Jersey is just a stone’s throw away from NYC, and with its cheaper housing, more suburban feel, and easy commute into the big apple, it’s no wonder why so many people choose to make New Jersey their home base. For those living in the Northern parts of New Jersey, the daily commute to Manhattan can be as short as thirty minutes.