Originally Posted by citylights23
Hello! I am a recent college grad and just started my first full time job. I am from philly but i work and live in an apartment in NJ. I claimed philly as my place of residence but don't know if i should change it. The following is my income tax broken down:
$1666.74/ biweekly salary
- $167.93/ income tax
- $103.45/ s.s. tax
- $51.17/PA state income tax
- $65.40/ phila state income tax
- $15.09/NJ sui/ sdi tax
- $1239.51 after taxes
Based on this information, does it make more sense to claim residence in PA or NJ to pay lower income tax. Any advice would greatly be appreciated!!
Unless you permanently moved to NJ form PA, you are a full year resident of PA. Due to the absence of state reciprocal tax agreements between NJ and Philadelphia, you ,as a nonresident of NJ, need to file NJ tax to pay NJ source income to NJ and also need to file your Philly return as a full year resident of Philly with Philly to claim the taxes that you pay to NJ on your Philly return as you are not subject to double taxation in NJ and Philly state.