Yes, it sounds right. Although New York (NY) does conform to most pre-tax items that the federal allows, Pennsylvania (PA) does not. Most often the PA wage will be higher than the federal (Box 1) wage and can match the social security and medicare wages on the W-2.
As long as you prepared the NY return first as nonresident, then the PA return as resident, then TurboTax knows the correct amount of your credit for taxes paid to another state. As indicated the your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
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