Did you purchase desktop software with state software included? They sell Deluxe both with and without state software--so you have to be careful which one you choose. And even if it does have the state software download included, that is forpreparingthe state. There is an extra $25 fee to e-file the state. You can avoid the state e-file fee if you print and mail the state instead of e-filing it.
".....how do they come up with the total amount you earned for the year? "
"They" come up with a total amount of income based on the information the user entered. All of your income has to be entered in the federal return--all W-2's, all 1099's, etc.-- and the information flows from the federal return to the state return. The software then uses your state's tax laws to tax the income that is taxable in PA.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**