The employee only has to pay public and local taxes for Pennsylvania, not for Virginia. They keep taxes for the employee`s home state. Reciprocity between States does not apply everywhere. A worker must live in a state and work in a state that has a fiscal recession agreement. So which states are reciprocal states? The following conditions are those under which the employee works. Hello Kathy – I am a current student and resident of California. I have been at CA all year 2006. I lived in Portland, OR and did an internship there. As such, I have income that has been earned in both TURNOVER and GOLD for different parts of the year. I am trying to clarify the tax complications and figure out how to file a non-resident tax return in GOLD and what type of return must be returned to CA. Here too, a credit agreement means that the worker`s Member State of origin grants him a tax credit for the payment of State income tax to his State of work.
California does not have specific tax treaties with other states, but residents of Arizona, Guam, Indiana, Oregon, and Virginia can charge their California income tax debt for taxes paid to their home countries. You do not have to file a D.C. return if you work there and are established in another state. Submit to your employer the D-4A exception form, the Certificate of Nonresidence in the District of Columbia. Unfortunately, it only works the other way around with two states: Maryland and Virginia. You do not have to file a tax return not established in any of these states if you live in D.C, but you work in one of these states. Employees residing in one of the member states may submit Form WH-47, Certificate Residence, to claim an exemption from the Indiana State Income Tax. New Jersey has had reciprocity with Pennsylvania in the past, but Governor Chris Christie announced the deal with effect from January 1, 2017.
You should have filed a non-resident tax return in New Jersey starting in 2017 and paid taxes there if you work in the state.