HI,
I am a resident of PA attending school full time in IN. I worked the summer in PA and during the school year in IN. I have two w-2's, PA and IN. I know there is some kind of agreement between the states but I don't know exactly what it is. I have filed my federal return, but I need help with the state. Do I need to file a return for both states? Or if I just file the PA, do I include the IN w-2? Any help is appreciated...

If there is a reciprocity agreement between Indiana and Pennsylvania, you will pay income taxes ONLY to Pennsylvania, where you are considered a full-year resident due to your status as a student. You are considered a NON-resident of Indiana, which is important because that EXEMPTS you from local county taxes in Indiana.

If not, you need to file a return for Pennsylvania and a non-resident for Indiana.

You will pay taxes to Indiana ONLY on Indiana-sourced income.

You will pay taxes to Pennsylvania on ALL of the income, but claim a tax credit for taxes paid to Indiana.

If you need my professional help, PM me for details.

Wow, you answered every question I had, thanks so much