let me preface my remarks by stating that I am not an expert on those two states... But Common Sense tells you that you should not have to pay tax twice to two different states for the same transaction... So somewhere on the return you may be able to find a location to exclude the income or to give you a credit for the tax paid to the other state.. Multiple state returns are always a challenge, and you may have to ask the client if they wish to mail the two state returns if you cannot correct e-filing errors. Also sometimes one state wants to see the tax return that you filed in the other state.... Just my opinion