New Jersey and Pennsylvania Cross-Border Tax Help
Gould, Blake & Company CPAs is a CPA firm near you in Phillipsburg, NJ and Easton, PA that prepares New Jersey and Pennsylvania returns for people who live in one state and work in the other. We file in both states when you need to and make sure you don't pay the same tax twice.
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We serve clients throughout Pennsylvania and New Jersey, in person and remotely.
The New Jersey and Pennsylvania reciprocal agreement
If you live in one state and work in the other, your wages are taxed only by the state you live in. You give your employer one form, and you file one state return for your pay instead of two.
The agreement covers wages only. Local earned income tax, self-employment income, rental income and gains from property in the other state follow their own rules. We sort out what each state is owed and file every return you need.
Pennsylvania local earned income tax
Pennsylvania towns and school districts tax wages and business income on top of the state tax. Residents file a local earned income tax return each year by April 15, and we prepare it with your state return.
The reciprocal agreement doesn't cover local tax, so a New Jersey resident who works in a Pennsylvania town that taxes nonresidents, like Easton, still has that local tax withheld.
New York and remote work
If you work in New York, New York taxes your wages there. You file a New York nonresident return, and New Jersey or Pennsylvania gives you a credit so the same income isn't taxed twice.
Working from home for a New York employer can still count as New York income under New York's convenience rule, so check with us before you change your withholding.
Business and rental income in both states
Business and rental income is taxed by the state where the work or the property is, and your home state taxes it too, with a credit for the other state's tax. A New Jersey resident with a rental in Pennsylvania files a Pennsylvania nonresident return and claims the credit on the New Jersey return.
Businesses with employees, customers or property in both states can also owe payroll withholding, sales tax and business taxes in each. We work out where you have to file.
Frequently Asked Questions
Usually not for your wages. Under the New Jersey–Pennsylvania reciprocal agreement, only New Jersey taxes that pay. Give your employer Form REV-419 so Pennsylvania income tax isn't withheld; if it was, we file a Pennsylvania return to get it back. The agreement doesn't cover local tax: if you work in Easton, Easton's local tax is withheld and New Jersey residents can't get it refunded. Self-employment income, rentals and gains from Pennsylvania still go on a Pennsylvania nonresident return.
For wages, you file your Pennsylvania return and your local earned income tax return. Give your New Jersey employer Form NJ-165 so New Jersey tax isn't withheld; if it was, we file a New Jersey nonresident return to get it back.
You file a part-year resident return in each state, splitting your income by the dates you lived in each one.
Usually the state where your permanent home is. A state can also treat you as a resident if you keep a home there and spend more than 183 days there in the year. If you split your time, we look at the facts before you file.
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Office Location
600 Avenue A, Phillipsburg, NJ 08865
Phone
908-859-6530Office Hours
Monday–Friday, 8:30 AM – 4:30 PM
After-hours appointments available