Q. For the PA section of my W-2, I do not have PA state income tax withheld, but I do have PA local income tax withheld. Do I still need to file a PA state return?
A. No.
You are also not required to file a PA local income tax return. Only residents of the local jurisdiction are required to file a local return.
If you physically worked in the PA locality, you are subject to the local tax and withholding would be proper. I'm not sure that applies to remote workers (there are many PA local taxes, so the rules will vary). It may be worth investigating to see if you are entitled to a refund. Start by asking your employer.
