| Dear Robbie,
No you are not paying double tax at all! The NJ return is taking your combined income and providing you with a Tax credit on Sch ABC of the NJ tax return. Your turbo tax is performing a very complicated tax calculation but here is the summary of what it is attempting to calculate;
The percentage of NY income
-------------------------------- x Total taxes paid in NY = NJ tax credit allowed
The total income (NJ +NY)
This credit is offset against the NJ tax on the entire income. In this manner you dont pay tax twice. Recheck your program and look at the NJ Sch ABC carfully and you will see the above calculation performed. | 
