You are correct. You will be filing a Pennsylvania nonresident return and a Delaware resident return. Your income is taxable to both states, but you will receive a credit from DE on the tax you must pay to PA on the same income. To accomplish this, you will prepare the PA return first so that the credit can be accurately calculated and applied. Here is an FAQ on this: https://ttlc.intuit.com/replies/3302052
One thing to watch out for: if the W-2 repeats the Federal Income (box 1) amount on both box 16 amounts for PA and Delaware, TurboTax will initially calculate that your Delaware income is actually twice as much as it really is. If this happens, you should see a screen about double-taxed income on the Delaware return. This is the PA income, on box 16 of the PA line. This will remove the extra income so that your tax is accurately calculated for Delaware.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
