The way that NY and NJ work is that you report all wages earned in NY to NY (which I guess in your case is 100% of your wages). As you know, this will generate tax for NY State which will be carried back to NJ to be a credit.
Oh, this means that you do your NY nonresident first before entering your NJ resident return.
I don't think it matters what you "report" as NJ income, because the NJ return will take your data from the federal return. If I am not mistaken, the wages reported for NJ will be ignored...take a look at the NJ return when you finish.
So it may appear that you are declaring 100% of your federal income in both states...but because of the NY tax being a credit in NJ, the effect is that you are taxed only once on each dollar. It would be a perfect scheme if the states' taxation rates were identical, but as they say, "it's close enough for government work."
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