Can my wife and I file a different status on our state return than we do on our federal return? We get a much larger state return by filing separately on same return for state.

Yes, you may.  I know of two states that have this filing status, Arkansas and Kentucky.  It is not only legal but encouraged for a married couple to file married filing separately on a combined return, especially when both of you have income.  This way, you each get at least the standard deduction and also (potentially) a lower tax bracket for your separate incomes.  This is because these two states do not have a separate tax table for joint filers.  So, if this is your situation, you are absolutely correct to file separately on a combined return.

Exactly what I was looking for. I am in Arkansas, so this fits for me. Thank You!

Your more than welcome.