@avd706 --
"However, the more money my wife makes in NJ, the less credit I for what I pay NY"
Not so. NJ will give you full credit for the taxes paid to NY, up to the amount due to NJ. Your NJ tax will increase as your wife's NJ income increases, but the credit for NY will not diminish.
Filing MFS vs MFJ may or may not reduce your overall tax bite. That would depend on the actual numbers.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
