The W-2 for a New York resident who works in New Jersey typically includes wages and withholdings for both states. The New York wages are generally equal to the wages in Box 1, and the New Jersey wages are generally equal to the Box 1 wages plus certain deductions added back.
Because the New Jersey nonresident individual income tax return pulls the sum of all state wages to the Everywhere column, the Everywhere column is generally roughly doubled. There is not an Everywhere column adjustment line in the New Jersey individual income tax return in TaxSlayer Pro, so to fix the Everywhere column you need to adjust the New York wages in the W-2.
Adjusting the W-2
In the federal return, open the W-2 that includes both states and make the New York wage amount equal to the the difference between Box 1 and the New Jersey wages. The New York resident income tax return will pick up the Box 1 wages, and the New Jersey nonresident income tax return will pick up the sum of the Box 16 wages, which should total to the New Jersey wages on the W-2 the taxpayer received.
Based on the amounts on the W-2, in some cases the New Jersey return may not be e-fileable.
Additional Information: