Started job recently…dont understand taxes?
I recently started a job and have some questions about my taxes. I am a resident of Georgia, but my job is in New Jersey, and I currently live in Pennsylvania with my parents. In my first few paychecks, I noticed only New Jersey withholding tax. However, in my most recent paycheck, I saw both New Jersey withholding and Pennsylvania withholding, with New Jersey taking $0 this time and Pennsylvania taking about $100.
I’m confused about what this means for my taxes. Am I going to be required to pay taxes in both states, or should I now only expect to pay taxes in Pennsylvania? Additionally, do sick days have any impact on this situation? Any clarification would be greatly appreciated.
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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