Yes, this would be correct. You've allocated 20% of the wages to New York and 80% of the wages to Pennsylvania on the W2. The non-resident amount taxable in New York is 20% of the wage total while 100% of the wages are taxable to Pennsylvania, with a credit applied for the 20% that was taxable to New York.
When you do your state returns, be sure to start with your non-resident New York return and finalize it before starting your Pennsylvania return. If you had already started your state returns before editing your W-2, you should delete the state returns and start over. To do that in TurboTax online:
- Click State on the left side menu then click Go to state return in the lower right corner
- Click the trashcan icon by each state you want to delete, then click Delete on the pop-up window.
- To add the states back, click the + Add another State button and select the state to added back from the dropdown menu
To delete a state return in the Desktop product, click File in the black banner at the left, then slick Remove state return from the dropdown menu. Confirm the removal of the state to erase the data you previously entered so that you can start off with a clean slate.
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