@rebazambrano You do have an option. While NY is not taxing all of your income, they are factoring in all of the income to determine how much they will tax, and they are using New York rules, which includes taxing unemployment income, which is not taxed in New Jersey.
If you file as Married Filing Jointly in New York, New York will pretend that all of your combined income is taxable in New York and then prorate that tax amount to the amount of income actually earned in New York. If your husband has substantial income, this could put you into a higher tax bracket on his income, even though that income is not actually taxed in New York. And, his unemployment is also getting factored into the equation, even though that income is not even taxed in New Jersey, nor 10,200 of it is taxed at the Federal level.
So the option you may have that will produce a better result is to file as Married Filing Separately in New York. Although normally New York requires you to use the same status as your Federal return, this is a situation that is an exception: when one spouse has New York income and the other does not. If doing this results in lower New York tax, use that status.
But understand that your unemployment is going to get taxed in New York regardless. You may try to enter in the total amount of your New York income getting taxed and the amount of that tax in the Taxes paid to another state on your New Jersey return, and that may reduce your New Jersey tax further.
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