No, it is not saying your earned "$2,000. It is reporting the same $1,000 as taxable by two states. If you earned wages in a state other than your state of residence, the income is taxable by the state where it was earned. The state which you are a resident will tax 100% of your earnings, regardless of where earned. However, they will give you a credit for tax paid to other states so you are not subject to double taxation at the state level. When you start your state returns, prepare your non-resident state return first.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"