Accepted Answer

Yes, you are right.
Since you moved this year- you will be a part year NJ State resident and part year PA State resident and hence pay tax accordingly.
Since now you will be a PA State resident, you will pay state tax on the compensation earned to PA State. The reciprocal tax treatment is based on your State of residence and source of compensation. If you are telecommuting than your services are performed in PA state and the compensation you earn is PA Source and not NJ Source. In such a case there should be no reciprocal agreement to consider. Compensation is NJ source if the services are performed in NJ.

In either case- you are subject to tax on this income in PA.

Here is a link for your reference regarding reciprocal tax agreement-
http://www.state.nj.us/treasury/taxation/njit25.shtml

Let me know if you have any question.

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

Expert:	RD
Pos. Feedback:	99.4 %
Accepts:
Answered:	10/24/2009

Certified Public Accountant (CPA)

CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..