State tax filing

Yes you are correct, NJ will tax your wife's income and then NY gives you the credit for taxes paid to another.  So, when you file you will pay the tax on NJ nonresident return and receive the credit on the NY resident return.  You can also view the calculations in forms mode if using TurboTax Desktop, by clicking forms in the upper right corner.  

If using TurboTax Online, follow these steps:

1. From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)
2. Select Tax Tools 
   
3. On the drop-down select Tools 
4. On the pop-up menu titled “Tools Center”, select View Tax Summary 
5. On the left sidebar, select Preview my State Return

@ltra922