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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..
When You Canât Pay. Even if you canât pay your state income tax in full, you should still file your tax return on time and pay as much of the tax you owe as you can. That way, you wonât be penalized for not filing your taxes on time.In addition, the penalties and interest that the unpaid portion of the tax debt accrues will be less.hen You Canât Pay. Even if you canât pay your state income tax in full, you should still file your tax return on time and pay as much of the tax you owe as you can. That way, you wonât be penalized for not filing your taxes on time.