If married filing jointly and we live and earn income in separate state should we be taxed in the one state only?

[pschumacher2]

I have income from UT and it has state income tax.  Spouse has income and live in WY and there is no state income tax.  Why do we pay for WY income on the UT state income tax?

[Amd4950]

It depends if your two states have a reciprocal agreement.  You should only need to pay in the state you live in.  Do they withhold your resident state income tax or the state you work in?

[ErnieS0]

Utah allows a couple who files a joint federal return to file separately in Utah. 

A married couple who files a joint federal return may file separate Utah returns ONLY IF:

• one spouse is a full-year Utah resident, AND
• the other spouse is a full-year nonresident.

See Special Instructions for Couples

To learn how to do this in TurboTax: How do I prepare a joint federal return and separate state returns?