On the NJ state return, look for a screen that discusses About this Income, which will flag this W2 in particular.  On the next screen you will see checkboxes for the NY and NJ lines on the W2 to make the income not taxable in NJ.  Select the NY box so that the NY income line is not doubled-up with the NJ-reported income.

This is actually a NJ state programming requirement.  The state does not allow tax preparation software to automatically filter out income that is reported to another state and assume that the income is not taxable in NJ.  Thus programming must include this manual "filter-out" section that will address this and allow you to filter out the income reported to NY that is in essence getting double-reported to NJ.

And don't forget that later in the interview you will be asked about double-taxed income.  This is the income that is reported to NJ, which NY also taxes.  Those screens are to apply a credit on your NJ return for tax you pay to NY on the income you earn there.