Yes, you must file a PA tax return in which you include the IN W-2.
If you want a refund of the withheld IN taxes, you'll have to file a non-resident IN return to get it. On the IN return, you would allocate zero dollars to IN. You'll be able to do this as you go thru the TurboTax questions for the IN return.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
