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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..
There are exemption amounts if you live in another country for most of the year, and there are credits for taxes you pay to foreign governments, so in many cases, you don't actually end up paying any US taxes, but its still required by law that you report the income by filing a US tax return. just now. Report Abuse. If you are a U.S. citizen, then you must pay U.S. income tax on all of your income from anywhere in the world, even if you are never in the U.S. and live in another country all of the time.