OK, I know the live in NJ work in PA thing has been asked before, but after reading explanations here, I think something is wrong.

It's very simple. For ALL of 2007, I lived in NJ, but worked in PA.

My single W2 lists employers address in NJ (we were acquired by a NJ firm in 2006 so that's where home base is) but for the state, like in the bottom portions you tear out and in other portions of the W2, it lists PA.

So, I live in NJ, work in PA, but the company I work their payroll comes out of NJ with their home base.

I ended up getting about $1400 from the federal return back, and I owe NJ $400, and PA turned out to be a zero balance.

Is this right? Did TurboTax screw up? Did my payroll screw up? Will the feds and staties fix this if there is an error?

You will file PA tax return as nonresident and report all the income earned while working in PA.

File NJ tax return and report all your income (including reported on PA return). Then on NJ return claim refund of the taxes paid to PA.

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Originally Posted by MukatA

You will file PA tax return as nonresident and report all the income earned while working in PA.

File NJ tax return and report all your income (including reported on PA return). Then on NJ return claim refund of the taxes paid to PA.

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So, even though I only paid PA taxes on all my paystubs, and no NJ taxes, I have to pay NJ first, then they pay me back? So what will I owe to either PA or NJ? Or will I just get a refund?

I did turbotax and it said while they were reciprocal, it excluded income.

I already filed... paid NJ $450. I don't know if I'll be getting a refund from NJ or not. If I didn't claim refund will they just figure it out? Knowing NJ govt. I'd say it's highly unlikely.

I followed Turbotax instructions to do the PA forms first, then NJ. The forms had some weird tables I couldn't decipher, maybe the claim for refund is buried there.

Ugh my situation is so NOT complicated, but the system makes it that way.

No you don't pay NJ first and then they pay you back.
You complete NJ return and find out NJ tax. Then on the same return you deduct tax paid to PA. You pay only the balance. It may be zero if MA tax rate is higher than NJ tax rate.

Will they just figure out? No body will figure out for you.

Quote:

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Originally Posted by MukatA

No you don't pay NJ first and then they pay you back.
You complete NJ return and find out NJ tax. Then on the same return you deduct tax paid to PA. You pay only the balance. It may be zero if MA tax rate is higher than NJ tax rate.

will they just figure out? No body will figure out for you.

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OK, can I just re-file before October if in fact I made an error? They probably already took it out of my account, it was an e-check.

You cannot re-file; you must AMEND the original return with the state equivalent of the Form 1040X.

Given the naure of this conversation, In my opinion, you are in over your head. Go get professional tax help. With the rush over, any competent local tax professional can get your situation fixed in about an hour.