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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..
In retirement or out of it, if you move across state lines, your taxes can become complicated. If you have pension income from the state you retired in and you then move somewhere else, you might have to pay tax on your pension to both states -- or to neither state.If you pay tax on income from one state while living in another, ask your state of residence for a tax credit to prevent double taxation.our specific situation will depend on the laws of the states involved. New York, for example, doesn't tax most types of pensions and annuities, so if your pension comes from a New York employer, you're off the hook. If you move from New York to Florida, Florida has no income tax, so you don't pay there either.