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Hi and welcome to our site!Under the State of New Jersey and the Commonwealth of Pennsylvania Reciprocal Personal Income Tax Agreement - you are responsible for income taxes ONLY to NJ based on your residency. if you are a New Jersey resident and Pennsylvania income tax was withheld from wages you earned there, you must file a Pennsylvania return to obtain a refund. To stop the withholding of Pennsylvania income tax, New Jersey residents who receive compensation from Pennsylvania must complete Form REV-419, Employee’s Nonwithholding Application Certificate, and give it to their employer.Because of the reciprocal agreement, you pay taxes to your state of residency.
This agreement covers compensation only. Compensation means salaries, wages, tips, fees, commissions, bonuses, and other remuneration received for services rendered as an employee.