Yes, as a legal resident of PA you must file a PA tax return. PA can tax all your income, regardless of where you earned it.
Also, Indiana and Pennsylvania have tax reciprocity for W-2 earnings. If your only income from Indiana was W-2 earnings, you do not have to file an Indiana tax return. Note though, that if Indiana income tax was withheld from your pay, you'd have to file a non-resident IN return, showing zero Indiana income, in order to receive a refund of those taxes.
If you return to work in IN in future, you should file IN Form WH-47 with your IN employer. This will exempt you from IN withholding as a resident of a reciprocal state. You can download that form here:
https://www.in.gov/dor/tax-forms/withholding-tax-forms/
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
