No. TurboTax does not automatically compute the credit for Pennsylvania local tax paid on the New Jersey return. You will have to enter this yourself to claim the credit.
Here's how to do it:
- Click State in the left column
- Click Continue on Let's get your state taxes done right
- Click Continue next to New Jersey
- Keep going until you reach Credit for Taxes Paid to Another State. Click Work on Credit
- Select Pennsylvania as State or Jurisdiction. TurboTax says For Philadelphia (or another Pennsylvania taxing authority), select "Pennsylvania". Continue
- Enter the name of the taxing district for Name of City, Town, Jurisdiction or Municipality. Continue
- Enter your Double-taxed income and Tax paid.