As a worker in a reciprocal state, you can fill out that state's exemption form(https://www.nj.gov/treasury/taxation/pdf/current/nj165.pdf and give it to your employer if you don't want them to withhold taxes for your work state- NJ. If you do this, make sure your employer also withholds taxes for your resident state- PA, otherwise you may get hit with underpayment penalties come tax time.
If your employer does not withhold NJ taxes, then you need to file only your resident sate PA return.
If your employer has withheld taxes for NJ instead of PA, you'll have to file for a refund from your work state. You'll still file your resident return that also includes that income and pay tax on it.
In TurboTax, always start working on your non-resident state first.
https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-payments/state-reciprocal-agreement/...
@JH0412 Thanks for the question.
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