State tax filing

I assume you are a PA resident all of 2016.

First complete your federal return.

Then prepare a DE non-resident return showing only your DE sourced income.

Then prepare a PA resident return showing all your income, including the DE income.  Be sure your PA return include a Schedule G where you receive a credit for taxes paid to another state (your DE tax liability).

Don't forget to file a PA local earned income tax return that includes all wages and self-employment and unreimbursed business expenses.  You may be able to use any leftover credits from DE to offset the local.  Example:  Paid $100 to DE but received a PA credit for $80.  The remaining $20 can be used against local taxes owed.  Include a copy of the PA Schedule G with your local return.

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