As a Delaware resident, 100% of your income is taxable by DE, regardless of where it is earned. Because you work in Pennsylvania, your income earned in PA is taxable by PA. To prevent double taxation, your resident state - DE will give you a credit for the tax you pay to another state. In TurboTax, you should prepare your non-resident PA tax return first, then complete your DE tax return. This is necessary so the credit will calculate properly on your DE return. If you have already started or finished your DE return I suggest you delete it, complete your federal, then PA, and the start your DE return.
The credit DE gives you may not equal the amount of tax you pay to PA. Each state has their own way of calculating a credit for tax paid to another state.
As for why the amounts in box 1 and box 16 on your W-2 don't match, I have no idea. I recommend you ask the payroll or HR department at your company for an explanation.
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