I live in NJ and work in PA. In addition to federal copy, I received W2 copies of NJ, PA, and local municipality in PA. I have attached PA copy of my W2. My question is, I don't have any PA tax withholdings on my W2, but I do have tax withholding for local PA municipality (Bensalem). See attached picture.
After finishing the federal and NJ state tax returns, at the last step, Turbotax is telling me that I haven't completed the PA state return yet.
Do I have to file a nonresident return for PA? Like I said I don't have any tax withholding by PA state. I already added Bensalem tax on NJ to get credit for that. If I don't have to file it, then I don't want to pay $50 extra to file PA return for no reason.