LenaH
Employee Tax Expert

Get your taxes done using TurboTax

No, your wife's income is not taxable to New Jersey. Since you were a part-year resident and also received income from New Jersey sources during your period of nonresidence, you will file a NJ resident return and a NJ non-resident return. 

 

On the screens of the New Jersey return(s), you will get to allocate your portion of income as a New Jersey resident. Do not include your spouse's income in the allocation. You will also get to allocate the portion of income you earned in New Jersey when you were a Pennsylvania resident. 

 

I completed a mock-up return with your scenario. The spouse that lived in NJ for part of the year made $100,000. Spouse 2 made $75,000. On the screens of your New Jersey return, you will see a screen, Tell us your income while living in New Jersey. In this box, include only your income earned while you were a New Jersey resident. I entered $40,000. Please see the screenshot below.

 

 

The next screen, Tell us your New Jersey income while living outside New Jersey, you will enter the remainder of the income you earned in New Jersey (as a nonresident). You will notice the amount to allocate decreased by $40,000 and is now $135,000. Please see the screenshot below. 

 

 

On the screens that follow, you will get to allocate any other income you may have based on your period of residency. 

 

 

 

 

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