You should just file one W-2. Enter the Federal wages as stated on the W-2 you have and the same for the New York wages and withholdings. Make a separate entry for the New Jersey wages and tax withheld on the W-2 entry in TurboTax, reporting the wages and tax withheld for New Jersey.

Since you are an NJ resident, all your income is taxable by NJ, regardless of where you earned it.

NY can tax the portion of your income that you earned in NY.

NJ will credit you for the tax paid to NY on the portion of your income taxed by both states.

In TurboTax, complete the non-resident NY tax return first, before you do your resident state NJ return, so that the program can calculate and apply the credit.

Thanks. In my scenario, I'm trying to understand "all my salary" from NJ perspective.

Is it the taxable income for NY + NJ Copy 1(income earned in NJ)

OR 

Is it the 2 NJ copies, where the total amount doesn't even come close to the federal wages?

Thanks.

 

Just so I'm clear, you recommend adding the 2 NJ wages and taxes into a single row. I would expect the sum of wages to be close to the federal wages, but not exactly thee same. However, it 122K NJ consolidated vs 140 federal.

Your federal wages (Box 1) may not match your total NJ wages from the Box 16's of your NJ W-2's.  See Enter the correct amount of income? in this NJ tax reference:

NJ Division of Taxation - Common Filing Mistakes

 

First, prepare your non-resident NY return.

 

Then combine the two Box 16 and Box 17 amounts on your NJ W-2's into a single row in order to determine the correct figures for your NJ return.

 

If you are concerned that your NJ W-2 amounts are incorrect, then all I can suggest is that you double-check with your employer.