Either you changed something else and didn't start with your NJ return that you originally filed or you made an error inputting. When you did your NJ return, you had to remove the PA wages..... You also had to report the wages actually subject to tax by both states which you put $65k (you can not have higher than the NJ amount entered) The amount on NJ SCH A & B (the form that calculates the credit for taxes paid to others) The amount in Column A line A can not exceed the amount on line 2. Line 2 is all your GROSS wages subject to NJ taxes including interest and dividends and other income, . The amount in Column A line A can not exceed the amount of NJ w-2 taxable wages as that's the double taxed income. SCH A & B Column A line B should only have the taxes withheld for Local taxes in PA. your credit for taxes paid to other states in no way can be more than the amount paid or you did something wrong on input. The SCH A &B will take the double taxed wages over NJ Gross wages and create a % that must be less than 100%. Then the formula further limits by the deductions allowed to get to common AGI. You need to go back and review your entries and review SCH A & B on NJ.
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