Tax for multiple states

[DMB123]

I work in New Jersey & live in Delaware.  I process my tax married filing jointly.  When I add the state of New Jersey I can't find a way through the program to only include my information.  i.e. taxable income, exemptions.  The program wants to include my wife's income and also count her as an exemption.  I've used Turbo Tax for a number of years but this is the first time I have ever had trouble.  Oh, I didn't realize the error until after I filed so I will have to amend it.  Any help would be appreciated.  Thank you

[LenaH · Accepted solution]

If you are a Delaware resident and work in New Jersey, you should have filed a Delaware resident return and a New Jersey nonresident return. As you were completing your New Jersey nonresident return, you should have been prompted to allocate your income and exclude the income of your wife that was not New Jersey sourced. In addition, per the 2020 Form NJ-1040NR Instructions (page 5), you can claim a $1,000 exemption for yourself and your spouse since you are filing a joint return.

To fix your income reported on your nonresident return, your first step is to amend your returns. You can only do this once they have been accepted. If they are accepted, you may follow the instructions on the page How do I amend my 2020 return?

After you elect to amend, please follow the instructions below:

1. Edit your nonresident New Jersey return.
2. Allocate your wages that were earned in New Jersey.
   1. On the screen titled Did you earn all of your wages in New Jersey, answer No.
   2. Answering No opens a box, allowing you to enter your NJ wages. On this screen, please enter your NJ sourced wages. 

Once this is complete, please go through your Delaware resident return and ensure that it reflects the updated amount of New Jersey taxes for the credit of taxes paid to another state. 

[DMB123]

Thank you for your very detailed reply.  Reading through your guidance I noticed that you stated I could claim my wife as an exemption because we filed jointly.  This is where I thought I made the error.  I selected the income that was taxable in NJ submitted the documents but then gave some thought as to why the exemption was 2000.  I assumed that since my wife had no earnings in NJ that I could only claim myself.