I live in the state of NY but work in NJ. Not sure why I'm paying so much NJ state tax this year

[DanielV01]

You may need to check an entry in your NJ tax return.  When you prepare the state returns, you will want to prepare your nonresident state (in this case, NJ) first.  On the NJ return, you will see a screen titled About Your W-2 State Wage Information.  Because of state programming requirements, TurboTax includes both income lines as part of the NJ income (doubling up the income that is actually taxable in NJ).  The next screen is titled Let's Confirm Your Taxable State Wages from (Employer).  Click on the NY box so that those reported wages are not included on New Jersey's return.