To avoid being double-taxed in your home state of PA, edit your PA return:
- Select Go over Pennsylvania again.
- After several screens confirming your county information and residency status, you will come to Compensation Summary
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Select Edit on Compensation Summary next to the DE income from your W-2.
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Select Entire amount of this income is not taxable in PA.
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The next screen, Adjust this amount should now have the PA taxable amount correct from your employer.
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Several screens later, you should come to Taxes paid to other state(s) summary. This will provide a credit on your PA return for the taxes you paid to DE on your income.
