Living in NJ and spouse earned in NY. Should the total New York earned income only be the the income reported on w2s from NY? Turbo tax is getting some other value...

[jamesbattagliajr]

This doesn't seems to be as easy as it used to be.

[MaryK4]

While preparing your nonresident New York tax return, you should only allocate your wife's New York wages.  All income should be reported on your New Jersey tax return.  New York does use your total income to determine the tax rate, but only applies the rate to the New York state income, so you will see all the income on the New York tax return.

[jamesbattagliajr]

Thanks. After staring at the IT-203 form and instructions, I realized the income ratio is used to determine the income that is only for NY state.