Yes to your entries for the credit for taxes paid to another state on your NJ return. However, the credit could be a bit low and this relates to your final question about the NJ withholding and income allocation.
The NJ tax was figured on the amounts allocated to NJ. The box 16 amount in the NJ line on your W2 is what your employer attributed to NJ and withheld taxes on which also limits what you can allocate to NJ. Since 30% should have been the correct NJ wage amount, you should correct the NJ box 16 amount in the federal "Wages & Income" section by editing the W2. Correct the box 16 amount and leave the box 17 as reported.
In the NJ interview in the "Income" section you can click through to a screen titled "Tell us about your NJ income". It will show all your NJ box 16 W2 wages and present you a box to enter the amount of that total wage that actually belongs to NJ. That box 16 amount is the maximum you can enter in that NJ allocation box. Since 30% is correct you can enter the whole amount there. That will be the allocation to NJ on which your NJ tax is based.
This may also update the credit for taxes paid to another state since you have now increased the NJ wage allocation, but it also factors in what the NY tax on that income was.
On the W2 questions, you left NYC but continued the NY state job so the income taxed by those entities will be different.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
