New Jersey is one of five states that
treats a telecommuter working from
a home office on behalf of a New Jersey company to be working in New Jersey. So NJ will treat her income as NJ income.
https://www.thetaxadviser.com/issues/2010/feb/apractitionersguidetothetaxationoftelecommuting.html
She should request that her employer start withholding NJ taxes again. You should prepare the NJ NR return first so the software will calculate the credit on your NC return for the NJ tax.
