DMarkM1
Expert Alumni

State tax filing

Since PA and DE do not have a reciprocity agreement, you have to file in both states.  PA is your resident state so you must pay taxes on all income from all sources even if earned in DE.  For DE you only file for the income earned in DE as a nonresident.  You want to complete DE nonresident return first.  Take note of the taxes you owed to DE.  Then fill out out your resident PA return and you will claim a credit for the taxes paid to DE for the income that was double taxed by PA.  Here is a link that will help guide you.  

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