I assume you entered both W-2's on one screen as if it were one single W-2.
You will claim all the income for both states.
PA taxes wages EARNED there and NJ taxes all the income of a resident.
So it doesn't matter to PA that you don't live there and it doesn't matter to NJ that you didn't work there.
The tax you pay to PA will be a credit for the tax NJ charges so that you are not double-taxed.
(it may not be a total wash if the tax rates are different, but it will be close)
If you do the resident state first (NJ) the program won't know the tax charged on your PA return, so it won't know what to give you as a credit on your NJ return.
You need to do the non-resident return first for TurboTax to compute both returns correctly.
All compensation (on the W-2) is reported for both state returns.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
