Every year when we file our NJ state resident return we end up owing hundreds of dollars. But with Federal we get back about $1500. Why is this?

Check with your employer and discuss this w/ them. Find out what "withholding tables" they're using for NJ and whether they have your "filing status" correct. They may not be withholding properly for State and this might be why you end up in such a bind. The exception to this might be if you're receiving a large amount of "unearned income" such as dividends, interest, etc. because your employer is not taking that income into consideration.

CBMB has said it all; her advice is golden!

Thanks for all the compliments ATE! ;) We're quite the TAX team, aren't we?