Started job recently…dont understand taxes?

I am a resident of Georgia.

Job is in NJ.

Living in PA (with parents).

My first few checks I had NJ witholding tax only.

This last check I see both NJ withholding and PA withholding. With only NJ taking 0 this time and PA taking about 100.

what is happening with my taxes…am I going to be paying taxes in both states or should I now only expect to pay taxes in PA? Does sick days have anything to do with any of these things…I am so confused.

3 Answers

  • You pay taxes on where you work.

    You are working in PA.  If you don’t live there all year, you are a partial year resident.

    You need to file a tax return in NJ, to get the NJ taxes refunded.

    It looks like, the payroll dept made an error and had NJ taxes pulled by mistake or maybe they didn’t PA established as a tax authority yet, so they couldn’t pull PA taxes. 

  • You have to fill out returns in both sates either way, one where you live, one where you work.  You get credit for the taxes paid in each state.  Sick days not relevant to taxes.

  • This is a tough one.  Many states have instituted special rules for remote workers and some have tax treaties with adjoining states that govern where you pay tax.  With all the living and working arrangement changes due to Covid, it’s caused some interesting tax issues.  After May 17, make an appointment with a local accountant to review your situation and make any necessary adjustments to your withholding.

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