Heads Up!

A flip-flop for those who commute across the Delaware River.  Several months ago, we informed Pennsylvanians who work in New Jersey, and vice-versa, about a change occurring effective 1/1/2017 which we thought would end the “Reciprocal Agreement”. But, last week, Governor Christie of NJ announced the change will not occur after all.  Christie’s move reverses notice he had given to Pennsylvania of his intention to end the nearly 40-year-old tax pact with the commonwealth on Jan. 1.  The agreement prevents Pennsylvania residents who work in New Jersey from paying income taxes to the Garden State and vice versa. Ending it would have forced commuters to pay income taxes to both states, with a credit against what they owe to their home state based on what they paid to the state where they work.

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