@taxquestion2016 wrote:
Does this apply to residents with non resident spouses too?
No. There is an exception for residents with nonresident spouses.
...if during the entire tax year one spouse was a resident of New Jersey and the other a nonresident, the resident can file a separate New Jersey return, if required. The nonresident spouse also may have to file a nonresident return if income was received from a New Jersey source. Each filer calculates income and exemptions as if federal married, filing separate returns had been filed. The spouses have the option of filing a joint return, in which case their joint income would be taxed as if both were residents
See https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git4.pdf