PA/NJ Tax Deal Close To Expiration As Efforts To Spare It Continue
PHILADELPHIA (CBS) - A deadline is approaching for people who work in New Jersey and live in Pennsylvania, or vice versa.
A decades old tax accord between the two states could well be torn up when the new year starts.
New Jersey Governor Chris Christie's decision a couple months ago to cancel the bi-state accord in an attempt to balance his budget is not a done deal. There are ongoing discussions with state legislative leaders on filling a quarter billion dollar hole.
Philadelphia-based CPA David Lopez lives in Glassboro and advises clients on both sides of the Delaware River. He says if the agreement is terminated, lower income people in New Jersey will see their bills go up:
"Based on where we are, we're going to see a net tax difference where we're going to be paying more people more money for New Jersey residents."
Higher income Pennsylvania commuters may face the same problem, given New Jersey's variable rates.
But one good thing: commuters will have some time to adjust.
"This year is going to be out last little bit of relief and then next year, when we do our taxes for 17, which will be in calendar year 2018, that's when we'll get that,' Lopez adds.
But you might want to start planning, just in case the termination takes effect.