I work in NY and live in PA. My New York section of State Taxes I have entered in.
For my PA section of State Taxes for some reason there is a PA W2 and a NY W2 in there(first screenshot). When I click on Edit it gives me the option to check a box that says "Entire amount of this income is not taxable in PA". I already have my New York portion entered in New York, I am confused why Turbotax put NY into Pennsylvania section also.
My question is, should it have a NY W2 listed in my PA section? If yes, do I need to check the box for as it is double counting it(from what I can tell). When I check that box my taxes owed to PA goes from about 2,000 lets say, down to about 50 USD(using made up numbers and not the exact number).
You should mark the NY income as "not taxable" in PA. This is so the income is not double-counted. By removing this income, it allows PA to then apply the NY taxes you will pay as a credit against PA tax, bringing PA (presumably) down to $0 - since NY's tax rate is much higher than PA's.
You should mark the NY income as "not taxable" in PA. This is so the income is not double-counted. By removing this income, it allows PA to then apply the NY taxes you will pay as a credit against PA tax, bringing PA (presumably) down to $0 - since NY's tax rate is much higher than PA's.