Thanks for the response. I suppose the question is whether the fact that the patent is part owned by my wife and part owned by the University of California, and that the university is the one coordinating the income for the royalty and the one paying my wife gives it any "localization" in California.
Also interesting that her 1099-MISC in box 17 says "NJ" and not "CA" implying that the state income is based on residency.
