PA part-year TAX question?

Question

I worked in PA for the entire 2006, and was deducted PA state tax and Philly city tax for the entire 2006. Question is I moved from PA to NJ at the end of April of '06, i.e., I am a PA resident for 4 months and NJ resident for 8 months.

Am I supposed to ask for the 8 months of tax refund from PA and pay 8 months of NJ tax? When I am ready to fill the PA part-yr resident tax form, I find that I was "subject to PA tax on all income earned, received or credited from PA sources for that part of the year EVEN when I was a nonresident".
http://www.revenue.state.pa.us/revenue/cwp/view.asp?a=3&q=203451&revenuePNavCtr=%7C

Is it true? Why cannot I split my tax into 4 months n report that portion for PA tax only? No where explicitly explained how to split for part-year resident in PA, so I am confused. Thanks for your answer and help.

I see what answered below, which confused me more... I need to am subject to entire-year tax for both states? then I must be double taxed... correct me if I am wrong.

I worked in PA and lived in NJ for 2/3 of time.

And from my reading from PA tax form... the common interest is not included in taxable income for part-year resident.

tma, your answer looks helpful. But I am not so sure if I can claim to be a PA non resident. In PA40, there are 3 options: resident, non resident, and from ___ to ___ as a part-yr resident. The last options looks more appliable to me.

Unfortunately, city (philadelphia) tax cannot be claimed back, but that can be used for credit against my NJ tax.

Answer 1

Yeah this is pretty confusing. NJ and PA have a reciprocity agreement that allows your resident state to tax your wages, not both states. The question is are you considered a NJ resident? Technically youre considered a NJ part-year resident, but you're getting taxed as a resident. You may be able to file a NJ-1040, report all your wages, pay NJ tax, and then file a PA 40 and report 0 taxable wages since they were reported to NJ. You should receive all your PA state and local taxes back.

I would double check with someone at the NJ Tax Dept.

No, you would not be a PA non-resident. You would file PA 40 and can mark "final" under filing status since you moved out of PA permanently.

Answer 2

You owe Pa tax on all wages you earned in Pa., and NJ tax on all wages earned in NJ.
For things other than wages, interest dividends, unearned income it is split by the amount of time you lived in each state, or where you lived when you earned the income.
I assume you were not working in Pa., ie earning income from Pa sources while you lived in NJ.
It should work out that all wages earned in PA are taxed by Pa, and likewise NJ.