If one W-2 has local wages and the second W-2 has local income tax, put both figures into your program so that you have 100% complete W-2 information in your Turbotax program.  The reason you want to include the local income is for your Philadelphia tax return. The reason why your Federal W-2 has local income tax is because the federal government gives you credit for the PA state and Philadelphia local taxes that you paid during the year.