You will file a non-resident tax return for NJ, and a CT resident tax return. Only your NJ W-2 wages will be taxed by NJ . (unless you own some rental or farm property in NJ that you get NJ income from.....or work there as an independent contractor)
You will do the NJ return first, and then your CT Resident tax return. The CT-resident return will tax all your income from everywhere, including the NJ wages...BUT....CT will allow you to take a credit for whatever tax NJ assessed (which is why the NJ non-resident tax return must be done first). The CT credit will only be up-to what CT would have charged for that income, so if NJ taxes it at a higher %, then CT may not allow a full credit.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
