@HH125 - if you use Turbo Tax it will easily handle this transaction. It will require you purchasing the two states to do this correctly.
On the 'withholding', think through what that really means: your attorney sent that money to the non-resident state. So comes next April, you'll need to settle up with that state. Either you'll owe more or that state will send back a refund of some of the money that was withheld. The point is THAT STATE has the money.
On the otherhand, your resident state does NOT have that money. So why would you want to reflect on the resident tax return this withholding?
Now, whatever your tax liability is to the non-resident state (and that is NOT the withholding), becomes a credit on the resident state so that you are not paying taxes on the same dollar twice.
the 'withholding' and the 'credit' are two different things. Don't confuse them!
note:
income times tax rate = tax liability
tax liability less withholding = a refund or additional tax due.
