Working in NY but living in Philadelphia

[butimnotachef]

I'm living in Philly, but working in NY and my W2 box 20 has the locality name as PHILADEL but Turbotax gives me an error saying that isn't acceptable (NYC or YON are the options). What am I suppose to do in this case? 

[Vanessa A]

Are you working in NYC or Yonkers or just the state of NY? Where are you getting this message?

 If you are just working in the state of NY, then as you walk through and answer the questions about NYC and Yonkers, just say no, you do not live or work there and continue through.  If you are not living in NYC or Yonkers, there is no affect on your return as returns other than NYC and Yonkers are not filed through TurboTax, they are filed with the local taxing authority.

If you do work in NYC or Yonkers, and your box 20 says Philadelphia, then this means that your employer withheld and paid taxes to Philadelphia for you, but not NYC or Yonkers so your associated state should be PA not NY. 

When you entered your W2, what was the associated state for Philadelphia?  PA or NY?

NYC Income Taxes

(Edited 2/28/24 @ 7:53AM PST) @butimnotachef

[butimnotachef]

Thanks so much for your help! I'm getting the error at the end of the Federal tax return where its flagged by the smart check.

I am working in NYC and on the W2 it shows the state as NY (not PA), but the locality withholding is for Philadelphia. I thought this would be expected - since I'm not living in NYC I shouldn't be subject to the local tax and instead am taxed in Philly. And then for state, I am taxed in NY but then can claim a credit on PA return. Is that understanding correct? 

[Vanessa A · Accepted solution]

Yes, you are understanding that correctly.  

Go back to your W-2 in the federal section.  In the local tax section do you see right before box 18 a box that says Select a State?  In that box, you will need to select PA.  This is likely where the error is coming from.  This is different from your state entries in boxes 15-17.