Pa & DE State Tax Issue (Double Taxation)

[melmorsh]

Hello,

My wife works in DE and Lives in PA.  She got 2 W2s.  One for DE and one for PA.  They are identical except for entries 15,16 and 17 (State info and state wages).  I entered the DE W2 then added the PA info to it (DE and PA). When I went to do the PA taxes, somehow TurboTax is seeing it as another income and added the state wages and tips twice (one for PA and one for DE).  She only paid taxes in DE and not PA.  How can I get Turbotax to realize that the State wages and Tips should not be added (DE + PA) and also get the credit back from DE? 

[DMarkM1]

Yes, you need to remove the duplicated income.  In the PA interview "Update" the "Income and Adjustments" section.  You will arrive at a page titled "Compensation Summary." You should see two lines with the same employer with one having DE as state ID and the other PA.  Edit the DE line.  Mark the "Entire Amount as non-taxable in PA" since you already have the 2nd line from the employer with taxable PA income.  

This will remove the duplication on your PA return.  

The income was still taxed in DE on your DE return and the information from that return flows to the "Credits" section on your PA return.  You can "Update" the "Taxes & Credits" section in the PA interview and there you will find the credit for taxes paid to another state (DE).  

[melmorsh]

Thank you so much for your answer.