Question

NJ Resident working in Lower Gwynedd Township how to claim local taxes on NJ state tax return

Forum|Forum|1 year ago
March 9, 2025
1 reply
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Hello,

I am a NJ resident who works in PA in Lower Gwynedd Township. Turbo tax is showing I owe $400 to NJ. I was hoping I could claim local municipalities taxes on my NJ tax return. Can someone tell me if that is possible.

TurboTax Premier Online

M

MindyB

Unfortunately, no. Pennsylvania local tax is not eligible as an offset to NJ taxes via a credit for taxes paid to other states. See page 31 of New Jersey Resident Return Instructions.

You can include this tax as part of your income tax itemized deductions (SALT limited to $10,000 currently).

Nonresidents must pay the local tax for where they work. Here is some information: How is an individual employee’s local Earned Income Tax liability determined?