NJ taxes non-residents only on "NJ-source" income.
NJ Statute 54A:5-8a (2) defines NJ-source income as income earned "in connection with a trade, profession, occupation carried on in this State or for the rendition of personal services performed in this State." (emphasis mine)
https://casetext.com/statute/new-jersey-statutes/title-54a-new-jersey-gross-income-tax-act/chapter-5...
I think NJ simply wants documentation from your daughter's employer that she never actually worked in NJ.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
