I just got married in Sept 2007, I work in NY and my wife works in NJ. We both presently live in NY. Before we were married my wife lived in NJ. I want to file my federal return jointly and my NY and NJ State return separate because of an increase in the return. Is that possible?

Some states want that you use same filing status as federal return.

On your NJ return, you will only pay taxes on your wife's income. You are nonresident on NJ return and you don't have any NJ source income.

On NY you will pay taxes only on the income from NY sources and also earned when living in NY.