@ecrens2020
No, you've been doing it right all along (the post/answer just above yours appears to need some major modification).
As a NJ resident, you would only file a PA non-resident tax return if, as a W-2 employee, your PA employer withheld PA state taxes, and then you would only do that to get the improper PA withholding refunded (effectively you have zero PA income)
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Back in late 2016, NJ was going to eliminate tax reciprocity between NJ and PA, but then it was rescinded before 2017 started. So NJ-PA tax reciprocity is still in effect.
Read the "NJ/PA Reciprocal Agreement" at:
https://www.state.nj.us/treasury/taxation/njit14.shtml
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Since that NJ-PA reciprocity agreement is still in effect, you only file a NJ resident tax return, as long as no PA state taxes were withheld for that W-2 job in Philadelphia, and you get to take a credit on the NJ tax return for the taxes withheld for Philadelphia. (Philadelphia and PA are entirely different tax authorities, i.e. there is no NJ-Phila. reciprocity)
No Philadelphia tax return is required for you as a NJ resident, since your employer handled it on your W-2 withholding ( I think this is correct..? @maglib @re2boys @rjs @retiree one of you knows for sure ).
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And to be clear, TTX software does allow -preparation of PA-State tax returns (not that you need it ) ... but TTX maybe/probably does not prepare Philadelphia tax returns...those are two different tax authorities.
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IF you end up owing NJ a lot every year, talk to your employer/payroll/HR about preparing and giving them a new form to have NJ withholding increased. Probably an NJ-W4, with fewer allowances than you are using now, or an additional $$ amount on line 5 of the form:
https://www.state.nj.us/treasury/taxation/pdf/current/njw4.pdf
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
