If you are a Delaware resident and work in New Jersey, you should have filed a Delaware resident return and a New Jersey nonresident return. As you were completing your New Jersey nonresident return, you should have been prompted to allocate your income and exclude the income of your wife that was not New Jersey sourced. In addition, per the 2020 Form NJ-1040NR Instructions (page 5), you can claim a $1,000 exemption for yourself and your spouse since you are filing a joint return.
To fix your income reported on your nonresident return, your first step is to amend your returns. You can only do this once they have been accepted. If they are accepted, you may follow the instructions on the page How do I amend my 2020 return?
After you elect to amend, please follow the instructions below:
- Edit your nonresident New Jersey return.
- Allocate your wages that were earned in New Jersey.
- On the screen titled Did you earn all of your wages in New Jersey, answer No.
- Answering No opens a box, allowing you to enter your NJ wages. On this screen, please enter your NJ sourced wages.
Once this is complete, please go through your Delaware resident return and ensure that it reflects the updated amount of New Jersey taxes for the credit of taxes paid to another state.
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