[surfzturf]

PA Member in an LLC receives Guaranteed Payments as a Partner as well as Ordinary Income. Are the Guaranteed Payments included in the reciprocity agreement between PA and NJ Or, is total income earned in PA including the Guaranteed Payment(s) subject to NJ tax?

[ebaines]

I assume you are a PA resident. Only income from wages are covered by thereciprocity agreement between NJ and PA; all otherr NJ sources of jncome must be reported on an NJ non-resident income tax return, and then for your PA tax return you also report that income but take a credit for taxes already paid to NJ. You only pay tax to NJ on income from NJ sources; any other income is not subject to NJ tax. However, in calculating the appropriate tax rate to apply for the NJ tax return they do ask that you report all imcome.