State tax filing

You are correct, the federal return is filed with all the income regardless of work location. However, it may help to add another state in the W-2 to put zero wages for you in NJ.

File a NJ return as part year resident for your wife. It indicates you must use the federal filing status since your wife was not a resident for the entire year. The income you earned must be adjusted so that you are not taxed on that income.  Some states use a proration of the tax amount so don't be surprised if you see all of the income.  Look further if that is the case when you view the return.

• Your New Jersey filing status must match your federal filing status unless you meet an exception or have a special circumstance.
  • Married/CU couples: One is a resident and one is a nonresident If you and your spouse reside in different states for the entire year and only one of you lives in New Jersey, the resident spouse can file a resident return using the filing status Married/Civil Union Filing Separately, even if you are filing a joint federal tax return. The resident spouse calculates income and exemptions as if they filed a separate federal return.

File a CA return as full year resident for you. And it appears to have the same rules as NJ.

• Exception - If you file a joint return for federal purposes, you may file separately for California if either spouse was one of the following:

  • An active member of the United States armed forces or any auxiliary military branch during the year
  • A nonresident for the entire year and had no income from California sources during the year

Adjust your CA return if necessary so that only the income you earned is taxed.  The same information applies here as written above for NJ.