Yes. Go through the state interviews carefully and TurboTax will handle the necessary changes.
New Jersey (NJ) and Pennsylvania (PA) are reciprocal states. PA Nonresident Filing Requirement with Reciprocal Agreement:
PA has reciprocal tax agreements with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia. Under these agreements, one state will not tax a resident of the other state on compensation subject to employer withholding.
File your resident return claiming all of your worldwide income.
File a PA return ONLY if you have any state tax withholding for this state. You will receive a full refund.
When you are in the Pennsylvania (PA) return you should see questions about reciprocal states and TurboTax may work this out for you. You should receive a full refund from PA.
For the NJ return, watch to be sure you are paying tax on all of your worldwide income for 2022. As you go through each return check your results. The PA state tax withholding will be 3.07% of your wages so it may be a lower tax rate than what you will owe to NJ.
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