I live in Washington DC full time but work remotely for a company in New Jersey. I have NJ State Taxes withheld from my paycheck, not DC. I'm the only one who works in DC fulltime and my employer said it would be too complicated to set up DC taxes to be withheld just for me. Is there a way I can have a credit for NJ taxes paid to apply to what I owe to DC? I feel like I am paying state income tax twice.
my employer said it would be too complicated to set up DC taxes to be withheld just for me
If only that'd been a valid excuse! "Officer, it's too complicated for me to comply with the speed limit" said no-one ever.
Is there a way I can have a credit for NJ taxes paid to apply to what I owe to DC?
You'd need to file a NR tax return in NJ and request a refund. You shouldn't be paying NJ taxes.
Your employer should withhold correct taxes for correct jurisdictions. "Complicated" or "difficult" are not valid excuses to violate laws. Your employer is in the wrong, and you can report them to the DC regulators which will gladly go after them because not only your withholdings are wrong - they're also not paying the DC payroll taxes.
If they're allowing remote employees - tax compliance is just the cost of doing business and they need to be properly handling this for you and all their other remote employees.