Posted on 04/02/2012 6:49:39 AM PDT by mikelets456
Okay, I am selling my house in NJ because the property taxes, income taxes and insurance are out of control. Overall we'll be saving $6000-$10000 per year if we move. My wife's drive to work will be about the same my drive will be 10 minutes further. The main reason wanting to leave NJ are for the obvious reasons as I think this state will never change and possibly continue its downward spiral. Anyone that lives in PA that lived in NJ...is there anything to warn me of? Am I going from the frying pan to the frying pan or fire? Any suggestions or anything you would like to add? Thanks
Bucks County is just as expensive as NJ I thought. Good luck.
good decision, you are punching above your weight.
Won’t you still pay NJ income tax if you work in NJ?
I never lived in NJ. PA all my life. Yet somehow I got on the NJ Dept. of Revenue tax roles. They mail me a tax return package every year. I just pitch it in the trash.
All of the employees that work in NJ and live in PA pay PA tax...I will double check.
PA and NJ have income tax reciprocity. So if you work in NJ, you would pay NJ income tax.
Identification
Pennsylvania has a reciprocal tax agreement with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia. The state of New Jersey has a reciprocal tax agreement with only Pennsylvania. A reciprocal agreement means that both states mutually agree that employees should pay income tax to their resident state rather than their work state. Provided you submit the proper form, if you have an employer, he is responsible for making the appropriate withholding from your paychecks and submitting your payments to your home state’s taxation department. A reciprocal tax agreement applies to salaries, wages, commissions, bonuses, tips, fees and other compensation for services rendered.
Determination
Since New Jersey and Pennsylvania have a reciprocal tax agreement, if you live in New Jersey and work in Pennsylvania, you should pay New Jersey income tax to the New Jersey Department of Treasury, Division of Taxation. If you lived in Pennsylvania and worked in New Jersey, you would pay Pennsylvania income tax to the Pennsylvania Department of Revenue.
One minor detail to keep in mind - there is no toll on the I-95 bridge across the Delaware north of Trenton. So if you can line up your home and commute to use that bridge, that can save you a few bucks each month.
Well, I live in NY and work in NJ, and pay the full NJ state income tax on my earned income.
Actually, I was wrong and you were right, you would not pay NJ income tax, just PA income tax.
There is no reciprocity between NJ and NY.
Both my employer and my residence are in Pennsylvania, yet NJ bombs me with tax return packages every January.
The only thing I can figure is that somehow my employers payroll service coded me incorrectly some years back. Never lived in Jersey; never worked for anybody there.
You are still going to have to deal with “Jersey drivers” ;)
I grew up in South Jersey and have been living in SW PA for the last 20 years. The only thing I miss about Jersey is the good food. The gun laws here are more relaxed and the property tax is much lower. Much more laid back scene here. When I go back to visit relatives in Jersey I can only stand it for about 2 days,then I head for home!
We live in South Jersey now but I grew up in PA, lived in the Council Rock school district for 15 years or so.
I’ll FR mail you.
You’re about to make the best move ever! Will FReepmail you with further good news.
I live in PA and pay income tax on NJ source income too. Basically, you get credit on your PA taxes for the tax you pay in NJ but you will end up paying NJ taxes so you will pay the higher rate.
But yes, Bucks is rather expensive territory. Also loaded with libs. Still, guns are so delightfully legal here :)
That is not the case, if I understand your comment correctly.
I take a full credit on my NY state income tax form for the NJ state income tax I pay. You fill out form IT-112-R, and enter the amount as a credit on line 41.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.