How much income should be taxed in NY if I lived in NJ?

[echotoy]

My wife and I lived in NJ. All my income came from NJ and all her income came from NY.

Will all our income be taxed in NY or only her income will be taxed if we file a joined return?

Thanks!

[fanfare]

do the non-resident tax return first.

TurboTax will answer your question.

[echotoy]

@fanfare 

Thanks for reply.

I did the non resident state first. But it looks like Turbo tax used our whole income to calculate the NY tax return. As a result we have to pay the 1000+ tax return which caused a penalty in NY.

I will get some credit from NJ to make up the tax I paid for NY. But the penalty will not be paid. Is that expected?

Thanks.

[fanfare]

why are you reporting your income on NY return if you had no NY income.?

[TomD8 · Accepted solution]

New York's rule for non-residents is that if you filed a joint federal return, and only one non-resident spouse had NY income, you must file a joint non-resident NY tax return.  NY will use your joint income to determine your tax rate, but it will only tax your NY income.