nn599
Returning Member

Nonresident Wage Allocation: Married filing jointly, living in NYC, but spouse works in CT/NYC (hybrid) - how to calculate state tax filing?

We're married and filing jointly - both living in NYC.

 

I work from NYC, and my spouse's office is based in CT and she works in a hybrid setup.

 

How do I correctly allocate the Connecticut nonresident wages (my spouse's income) based on the hybrid office policy (60% office in CT, 40% home office in NYC) for the nonresident wages as part of the state tax filing? 

 

So far, I've just taken 100% of her income and distributed the full amount to the CT Total. I'm wondering if I should only distribute 60% of her income as this relates to the income generated when being in the CT office?

 

When reviewing, I'll receive the following error in the final review: "IT-112-R (CT): Tax Amount - TP should not be greater than the tax imposed by other state."

My spouse makes more money than I do, and according to our W2s the state-withheld tax for CT is higher than our NY state-withheld tax.

 

Is that the right approach, or what should I do differently? Thanks!