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You will file two state returns. Since you are an Indiana resident, you will file an Indiana resident return. For Pennsylvania, you will need to file a nonresident return, but your PA income will be zero. This is because Indiana and PA are reciprocal states and agree that if you live in one, but work in the other, you are taxed where you live and not where you work. This way, Pennsylvania will refund all of the tax that was withheld to PA. However, you will have to pay tax on this income to Indiana. However, you may have your employer take out taxes to Indiana instead of PA by filing the correct form with them. Please see this FAQ for more information: https://ttlc.intuit.com/replies/4776822
In addition, if you pay a local tax in Pennsylvania, this is not part of the reciprocal return, but you may claim a credit for these local taxes on your Indiana return. This will be in the Indiana State Return under Other Deductions and Credits.
I am providing a few screenshots to assist you. The first two show how to exclude the income in the PA return (example shows NY info, but you'll choose the PA info instead), and the third shows the Indiana Credit Screen:
You will file two state returns. Since you are an Indiana resident, you will file an Indiana resident return. For Pennsylvania, you will need to file a nonresident return, but your PA income will be zero. This is because Indiana and PA are reciprocal states and agree that if you live in one, but work in the other, you are taxed where you live and not where you work. This way, Pennsylvania will refund all of the tax that was withheld to PA. However, you will have to pay tax on this income to Indiana. However, you may have your employer take out taxes to Indiana instead of PA by filing the correct form with them. Please see this FAQ for more information: https://ttlc.intuit.com/replies/4776822
In addition, if you pay a local tax in Pennsylvania, this is not part of the reciprocal return, but you may claim a credit for these local taxes on your Indiana return. This will be in the Indiana State Return under Other Deductions and Credits.
I am providing a few screenshots to assist you. The first two show how to exclude the income in the PA return (example shows NY info, but you'll choose the PA info instead), and the third shows the Indiana Credit Screen:
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