You will always be taxed in the state where you live. Your resident state will give you credit for taxes paid to another state to eliminate double taxation.
File your resident state last.
File PA as a nonresident to include only the wages earned while working in that state. TurboTax will walk you through this state interview. Be sure your residency is "nonresident".
It should be a break-even (+/-) situation because the state withholding is exactly the state rate.
File Delaware as a resident and then utilize the Credit for Taxes Paid to Other State. Delaware will give you a credit of the actual tax paid to PA or the tax they would have charged on the same income, whichever is less.
- Sign into your TurboTax account > Select State Taxes > Select Review next to Delaware
- Continue to Credits and follow the prompts.- TurboTax will carry the information for you.
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