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Compensation paid to Pennsylvania residents employed in New Jersey is not subject to New Jersey Income Tax under the terms of the Reciprocal Personal Income Tax Agreement between the states. Similarly, New Jersey residents are not subject to Pennsylvania income tax either.
The New Jersey/Pennsylvania Reciprocal Agreement does not apply to income or wage tax imposed and collected by the City of Philadelphia or any other municipality in Pennsylvania. That means a New Jersey resident who works in Philadelphia and pays city wage taxes can claim a credit for the taxes paid to Philadelphia.
You may claim this credit if you had income that was taxed by California and another state. The credit will offset the taxes paid to the other state, so you are not paying taxes twice. This credit applies to: Individuals.
Your NJEITC is a specific amount designated yearly; you do not need to calculate a federal EITC to determine your New Jersey percentage. For Tax Year 2022, the amount is $224.
Dual State Residents If you are considered to be a resident of both New Jersey and another state for the same period, you can claim a credit based on all income taxed on both the New Jersey and the other states resident returns, except for any income allocated to New Jersey.
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NJEITC is a cash-back tax credit that puts money back into the pockets of working families and individuals, including the self-employed, who earn low to moderate income. Do not shortchange yourself. You worked for it, now get it. Many NJEITC filers will receive their refund within our normal estimated processing times.
NJEITC is a cash-back tax credit that puts money back into the pockets of working families and individuals, including the self-employed, who earn low to moderate income. Do not shortchange yourself. You worked for it, now get it. Many NJEITC filers will receive their refund within our normal estimated processing times.
Dual State Residents If you are considered to be a resident of both New Jersey and another state for the same period, you can claim a credit based on all income taxed on both the New Jersey and the other states resident returns, except for any income allocated to New Jersey.

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