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Probable both, but would need to know all particulars to say for sure. You don't provide any details
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the business is an electrical contractor that has generated 90% of his income in NJ and the 10% balance from work done in PA.
Again he is a PA resident all year. NJ & PA are reciprocal states does all the income get taxed in PA where he resides?
Not sure what more details do you need??
Thank you
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Reciprocal states only matter for w2 employees where the NR state withholds resident state taxes. for a contractor that is self employed he will have to pay 100% of worldwide income to resident state, and will also pay taxes on amounts earned in any NR states he worked in. He should be able to claim a credit in his resident state for any taxes paid to NR states. This is the general rule, as each state has different rules, but in general a independent contractor working in a NR state should make estimated taxes to his home state, and any NR states he works in.