Thanks, DmarkM1 for your detailed explanation. It is super useful.
To your second point, other than MN return, I think have issue for fed return. Because TurboTax doesn't provide a place for filling 8958 for me, my income is still 60K while my wife reduces 10k. I can hardcode it to 70K in form to form mode, but the number will be different from my W2.
I played Turbo Tax a little more after I posted the question last night. I figure out a possible way to MFJ both Fed and two state return. When I do state return, I can first work on CA one. I take me as non-resident and the income I earned in CA time as CA source income. Then I work on MN return. Turbo tax provides Tax paid to CA so that to get the credit. But the problem comes. The numbers are not correct. Adjusted gross income provided is my wife's income in CA and my income CA part excluded. The credit is our total CA tax. It seems that we need to remove my wife's W2. and calculate the CA tax of my part to adjust. And when I continue work with it. It seems it assumes my wife is MN resident as well. My understanding is that M1NR with M1 for my wife as non resident is needed. Questions 1), how to remove my wife's W2 in MN tax return? 2) How to include a M1NR ? 3) In M1NR, there is no full year resident option for me. What should I do? Maybe, Turbo Tax will help me solve that. If yes, it will be great you can confirm it.
Thanks a lot again !
