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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.uppose you retire in Delaware, then move to Ohio and make that your state of residence. The year you move, you may owe tax to both states: If you move on May 28, tax up to that point goes to Delaware; for the rest of the year -- and the following years -- it goes to Ohio.