Please help this NJ resident with a state tax question. I live, own property, am employed and vote in NJ. In 2014 I traveled to & worked in DC about 70 business days, always staying in hotels. My employer withheld tax for both states proportionately as far as I can tell, NJ tax for the work days I was not traveling and DC tax for the work days I was there.
I've filed DC tax form D-40B, nonresident request for refund. Based on the facts that I was non-resident and present fewer than 183 days, I think the form tells me I will get a full refund of the DC tax paid. But the form also says "we may determine that you qualify as a DC resident", and I don't have that answer yet.
The HR Block state tax program for NJ seems to indicate I can take a credit on my 2014 NJ return for tax paid to DC. HR Block doesn't provide a state program for non-resident DC tax filing, so I can't lean on it for help here.
NJ and DC do not have a reciprocal tax agreement, says my payroll department as justification for withholding both taxes.
So .. I may get all the DC withholding back in 2015, I firmly believe that NJ will want more tax, and I don't want to pay a penalty!
The main question I'm trying to ask: when does this all shake out? When I file a tax return for 2015? And is a penalty unavoidable?
My question is very close to this SE-money post, altho that one doesn't address the reconciliation question:
Thanks in advance.
Update: tried to clarify per Andy's comment.