The input of state income taxes withheld is done in the W-2 section under Federal Taxes - Wages and Income.
• Select Federal Taxes
• Select Wages and Income
• Select Start at Form W-2
State information is included in boxes 15 - 17.
You will file a non-resident DE state tax return and a resident PA state tax return. You should allocate your income on the DE tax return so that your wages is the only income there. The taxes withheld for DE should be refunded to you as PA and DE have a tax reciprocity agreement.
Going forward, work with your employer so that only PA tax is withheld from your paycheck. You need to fill out a Delaware (Form 200-02).
