Hello JoeRendon271, I experienced the same issue too but I finally found a solution!
You only get a black shadow if your wallpaper is cropped wrong. By downloading the paid App "Pimp Your Screen" (it's worth it) and by selecting "Home Screen creator" and loading there your wallpaper, the App will generate a cropped one which you will have to save to your camera roll. Do the same for your lock screen using the Lock Screen creator. By setting the new wallpapers obtained, you'll have no shadow!
In short, use this App to get no - shadow wallpapers. You also have the ability to add cool effects such as status bars but I don't think it's the case.
Please notice I am NOT affiliated with the developers of this App. If you find one that does the same but it's free, please either post it as an edit on this comment or reply. I personally grabbed this App while it was free and I've been satisfied. Works well on iPad 2 iOS 7.1.1 and iPod touch 5th Generation iOS 7.1.1 too!