I came across my own answer so here is what I'm going with. In the W2 input I duplicated the wages reported on the W2 and assigned it to the second state and marked it as state only. This keeps the duplicate entry off of the federal and first state return. The credit is applied by going to State & Local: Other state tax credit: choosing the correct return to add the credit and then overriding the inputs on taxes owed to another state and the state credit line.