New Jersey Governor Chris Christie announced in September 2016 that the deal will be cancelled on January 1, 2017. New Jersey faced a budget deficit of $250 million, which would represent $180 million for the state. The denunciation of the mutual agreement would concern about 125,000 residents who travel from New Jersey to Pennsylvania, another 125,000 who make the reverse journey from work and all the companies that employ these people. The reciprocity agreement applies only to compensation. If you are self-employed or will receive other income (e.g.B profits from the sale of real estate) taxable in both countries, you must file a non-resident return in New Jersey and report the income received. If you are based in Pennsylvania and New Jersey income tax has been withheld from your salary, you must file a non-resident in New Jersey to get a refund.