Our residence is in PA and I work for a company in WV. My husband works for a company in DE, are our incomes taxable in PA?

[janellenzeoli]

My W2 says PA (employer is in WV), but my husband W2 says DE (employer is in DE).

[Hal_Al]

Yes. As a full year resident, PA taxes all your income, regardless of where the employer is located and even regardless of where you physically worked. 

[TomD8 · Accepted solution]

Your W-2's are correct.

PA and WV have tax reciprocity.  That means that PA residents who work in WV are taxed only by PA on their W2 income.  It is not necessary to file a WV tax return unless WV taxes were withheld on the W2.

However, PA residents who work in DE must file a non-resident DE tax return in addition to their home state PA tax return.  PA will grant a credit for the tax paid to DE on the income, so there will not be double taxation.

In TurboTax, be sure to complete the non-resident DE return before you do the home state PA return, so that the program can calculate and apply the credit correctly.