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If you live in Pennsylvania and work in New Jersey, your income is taxed by Pennsylvania and is not subject to tax by New Jersey. If taxes are improperly withheld by an employer in New Jersey, a taxpayer can apply for a refund.erbert M. Paul, a New York tax lawyer, explained how New York handles the matter. If you have a residence in New York and in another state as well, and spend more than 183 days in New York, he said, you are considered a statutory resident and all of your income is subject to New York tax..
Consideration 4: Moving to a third state. If you move twice during the calendar year and wind up living in three states, you might have to pay state income taxes in all three states. Carefully read the filing requirements for each state you lived in before you fill out your return. TurboTax can help you do this.