If i live in GA and work in NJ, do i hav to pay tax in both states? What about the Reciprocity Agreement?

Question

If i live in GA and work in NJ, do i hav to pay tax in both states? What about the Reciprocity Agreement?

Answer 1

If there is a reciprocity agreement, that would govern. Most states do not have such agreements. I think reciprocity agreements are between bordering states.

Instead, credits are given by the state of residence for the tax equal to the lower of the tax charged by the non-resident state or the tax the resident's state charges on the out of state income.

Answer 2

You will need to file a state tax return for both states.  You will get credits for the tax paid in the others so that you are not double taxed.