It depends. Since your wife worked in New Jersey in 2024 and you live in New York, New Jersey will tax her money earned in NJ. New York, as your home state, will tax all of your combined income (but should let you get a credit for taxes paid to NJ on the NJ money).
If you file together in TurboTax, it'll probably give both of your incomes to NJ for the filing where you are not a resident. This is why NJ is taxing your income, even though only your wife worked there.
Filing Jointly in NJ: If you're filing as “Married Filing Jointly” federally, you generally have the option of filing jointly in NJ as well. When doing so, NJ will ask for an allocation of income—yours versus your wife’s—to calculate tax only on her NJ-sourced income.
To ensure the proper flow of income between both states, be sure you prepare your non-resident NJ return first so that you will be given proper credit on your NY return for the taxes you paid in NJ. Be sure also to allocate both your incomes on the NJ return so that only her income is reported and taxed on her NJ return.
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