Q. Do I include income in PA on PA return or is it excluded?
A. You do not file a PA tax return at all, unless PA tax was mistakenly withheld. This assumes your income was as a W-2 employee and not a 1099-Misc contract employee.
Ohio has a reciprocal agreement, on wages, with all neighboring states. No state taxes are withheld or due and you do not normally need to file a return for the other state (MI, PA, KY, WV, IN). But OH will tax you on your other state income.
If other state taxes are mistakenly withheld, you then have to file a return, for the other state, to get a refund. OH will not give you a credit. You should ask your employer to stop withholding so you don't have to file a PA return every year.
Q. How do I view w-2 income included on Ohio tax return?
A. As a full year OH resident, TurboTax uses the Federal AGI in determining your Ohio taxable income. So, all your W-2 income is included on the OH return, even if the W-2 shows PA in box 15, for some of the income OH taxes all your income, you do NOT try to prorate it.
