My landlord is holding two months rent in security deposits. I told hom that the pa state law says that after fhe first year of my lease he was to return anything over the equivalent to one months rent back to me and he says he doesn't have to. I owe him money and I want him to use that money towards what I owe. Will my argument stand up on court?

Often one month is security deposit, the other is last month's rent. If security - you are correct (just refer him to the many PA tenant websites that describe this clearly).

Beware of withholding rent, however, while you duke this out. He can still evict you for non payment and the court may consider the two issues separately.

Can you cite the law (provide a link) that supports your contention that he has to return the money? Also what does your lease say about security deposits. Sometimes the lease overrides state law.