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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..
As a resident of Georgia, you must pay taxes on all income you earned, no matter the source (inside or outside the state). To avoid dual taxation, you can apply for a tax credit in Georgia.To do that, make sure you attach a copy of the tax return with the other state to your Georgia tax filing (Form 500).If you are a full or part-year resident, you should fill out the worksheet in Form 511 (page 14) to help the authorities calculate your credit for taxes paid in a different state.f you paid taxes to more than one other state, you have to sum up all the taxes paid in other states in order to have your credit calculated. If you earned income in a different state, but that state did not tax you, you will not receive a tax credit in Georgia for that income.