On September 2nd, Governor Christie signed an executive order, which would be effective on January 1, 2017, ending the Wage Reciprocity Agreement between New Jersey and Pennsylvania. That order would have forced New Jersey residents working in Pennsylvania (and vice versa) to file both a resident tax return and a non-resident tax return, because the state income tax to be withheld would be from the state of employment, not the state of residency.
However, on November 22nd, Governor Christie announced that the reciprocal agreement between New Jersey and Pennsylvania will remain in place. This means that New Jersey and Pennsylvania residents working in the opposite state will continue to pay state income taxes only in the state in which they live for 2017 and beyond.
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