What is the correct way to file for the following scenario?
I live in NJ and all my income 100k comes from NY (I work in NYC). My paychecks have NY State tax withdrawn from them and no NYC tax because I live in NJ.
My spouse's living address is in NYC. All of her income 160k comes from working in NYC. Her paychecks have NY State tax and also NY City tax withdrawn from them.
-when I file Married Filing Jointly with my name as the taxpayer and my wife as the spouse, my NY state tax file says that I will get a very large refund back...I think this is because it assumes we as a married couple shouldn't have paid so much taxes to NY State. But this excess money was coming from my wife having NYC tax taken out of her paycheck all year though being as she lives in NYC and I live in NJ.
And when she files as Married Filing Jointly as the taxpayer and puts me as the spouse, the NY state file says we owe some money in taxes...presumably some missing NYC tax that I never had taken out being as my address is in NJ....
Any advice?
