Pennsylvania-New Jersey Reciprocal Agreement to End
New Jersey is ending a nearly 40-year-old tax reciprocal agreement with Pennsylvania. The agreement allowed workers to pay tax to their home state, rather than the state where they work. NJ’s decision means you may pay tax to both states. Beginning January 1, 2017: (1) Impacted workers may owe tax to Pennsylvania and New Jersey. (2) Some workers may have to make estimated quarterly payments. (3) Most workers will need to file a tax return in both states starting in 2018. (Pennsylvania Department of Revenue,End of the PA & NJ Tax Agreement, October 2016; http://www.revenue.pa.gov/Pages/default.aspx# .WA-VS1go7ct.)
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PA-NJ_tax_reciprocity_qa.pdf – Click to Launch
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Reposted with permission from Wolters Kluwer.
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