State tax filing

Somewhat different point of view.

If you were filing a non-resident or part year resident PA return, the allocation of income to PA by your employer would be critical.  However, as a PA resident, ALL your income is taxable by PA regardless of where earned.  PA will be expecting your reported income for PA tax purposes to be very close to the federal box 5.

I would go in and change your W2 entry, box 16 to match box 5. Also use this new box 16 income on your local municipal earned income tax return as local tax agent and PA share information.

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