My wife and I got married at the end of 2024. I live and work in New Jersey. She lives and works in Florida. We prepared our federal tax return under "married filing jointly." Since, Florida does not have any state income tax, she does not have to file a Florida state return. We only have to file a state return for New Jersey. However, when I calculate the NJ state return in Turbo Tax it calculates it based on our combined income. There is no option for me to remove her income from the calculation (even when I change the state tax status to "married filing separately"). This is causing me to owe money to NJ (which is inaccurate). How do I exclude her portion of the income that is being pulled into the NJ state tax return?
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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 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. See How do I prepare a joint federal return and separate state.
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