Tax Question: Working in NJ, living in PA | FerrariChat

Tax Question: Working in NJ, living in PA

Discussion in 'New York Tri-State' started by SefacHotRodder, Mar 12, 2008.

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  1. SefacHotRodder

    SefacHotRodder F1 World Champ

    Dec 20, 2003
    11,158
    NJ
    Full Name:
    Chris
    Hey guys, i have a question and was hoping someone here might know the answer. I got my first paycheck here in NJ today. I work for my university in admissions for the website. I picked up my paycheck today and i had a gross pay of $89.38 (i only worked for 2 days which is why its so low) and i only had $2.74 taken out for "PA W/H" which i assume is PA withholding tax. This brought my net pay to $86.64.

    Does anyone know why i was only taxed for 1 thing? Surely 3% tax isn't the only tax i get? Is it because i live in PA and i'm working in NJ? Will i just be taxed in PA when it comes to tax time?



    Thanks





    Chris
     
  2. dm_n_stuff

    dm_n_stuff Four Time F1 World Champ
    Lifetime Rossa Owner

    Dec 10, 2003
    43,716
    26.806311,-81.755805
    Full Name:
    Dave M.
    Couple of questions.

    Do you get paid weekly or bi weekly?

    How many deductions did you claim on your W-4?

    Did you indicate on your withholding form that you expect not to pay taxes this year?

    I can't tell what combination of events led to your deductions being zero from the Feds. SS and Medicare should come out no matter what, but if your earnings threshold is low enough (based on items one and two above) you might not have earned enough in the pay period for the software to think you'd owe any taxes on it.

    there are earnings thresholds that you could be under that equal zero Federal Income Tax. You always pay SS and Med. If that didn't come out, then someone glitched your check.

    Are you a US citizen? (Not sure with that funky Brit accent you have. :D) I wonder if SS and Medicare come out of non citizen paychecks.

    Dave
     
  3. SefacHotRodder

    SefacHotRodder F1 World Champ

    Dec 20, 2003
    11,158
    NJ
    Full Name:
    Chris
    Every 2 weeks

    Not sure. My dads tax guy does all that

    I doubt it. I dunno why i'd (or the family tax guy) say that

    I've earned less than this and still paid taxes

    No. I've always paid that before though




    The thing that gets me is that it says "PA W/H" and i'm in NJ. Thats why i'm thinking it'll show up on my PA taxes when tax time comes around
     
  4. Vino Bello

    Vino Bello Karting

    Jan 21, 2004
    210
    Cali
    Chris,
    Given the facts given:
    Come tax time you will file a NJ non-resident return pay whatever taxes then file a PA return and get credit for taxes paid to New Jersey. The more sophisticated
    payroll sevrice companies will actually take out taxes for both states accounting for the credit in the non-resident state. You should be aware that given enough income you may wind up paying a penalty to NJ for underpayment of tax throughout the year.

    As far as not paying federal tax ,that is possible if that's what you indicated on your w4 but again this will make you unhappy at the end of the year if your income goes up. Why you are not paying FICA and Med, there are certain provision for government employees in certain jurisdictions that enable them to opt out of their pension plan and thereby avoid these two items, but i don't think that fits in your case. I would say double check with whomever takes care of these items in the company.
     
  5. SefacHotRodder

    SefacHotRodder F1 World Champ

    Dec 20, 2003
    11,158
    NJ
    Full Name:
    Chris
    Many thanks. My Dad is looking into it all right now
     

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