@standun In your original post you state that you received two different W2s, one for California and one for NY. But when you did the import they were combined into one W2. Seems to me the easiest solution to this whole thing is to enter them into the computer as two W2s with the state tax information separated. That will solve the matching box 1 and 16 problem for New York and you can still get the tax deduction for California.
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