If you prepare the New York return first, the form should be automatically prepared. It is possible that you may have a few details to ensure, however. When you work in NY, but live in PA, both states tax you, NY as a nonresident and PA as a resident. To prevent double-taxation, PA will give you a credit for the amount of tax you must pay to NY on that income, up to the amount of tax that PA assesses on that same income. Preparing the NY return first allows TurboTax to accurately calculate the credit.
For instance, if you make 50,000, and New York taxes that amount by 2,000, but PA 1,800, PA will give you an 1,800 credit, and your tax due is zero. On the other hand, if New York taxes that amount by 2,000, but PA taxes it 2,200, PA will give you a 2,000 credit and your tax due is 200.
One caution: If you see lines on your W-2 for both PA and NY in box 15, you may need to exclude the wages reported to NY. This is so that your true wages are not doubled-up for tax purposes. If this is the case, you will receive a screen asking you to Verify Your Income. In this screen you will state whether any income is being reported a second time to have the amount reported to NY excluded from your PA income.
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