If you live in PA, all income is taxable. Your w2 entry for PA should not include the NJ income. Return to the w2 screen and correct the PA entry.
PA will tax all income and give you a credit towards the NJ tax paid. The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state, if they have a higher tax rate along with differences in how the taxable income is calculated.
Be sure to view your return and check that the PA income is the correct amount and that you have a credit for the NJ income tax paid.
To see your forms:
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