[micky_123]

I would like to start by saying that I did go through the existing question before posting this and I could not find a similar situation.
Here is my situation:

Me and my wife live in NY. I work in NJ and she works in NY. We are filing are our NY state tax returns jointly. I understand that I have to file an NJ non resident return but I don't understand whether:
1) I would file the New Jersey 'Non Resident' form as Married filing jointly or Married filing separately? I have this confusion since my wife did not work in NJ and our New York 'resident' tax form is filed as Married filing jointly.
2) In case I have to file jointly on New Jersey NR form, then would I have to include my wife's income on there?

I would really appreciate if someone could give some advice on this. Thanks a lot in advance.

[ebaines]

From Page 4 of the NJ-1040NR instructions:
http://www.state.nj.us/treasury/taxa.../051040nri.pdf

Married Persons and Filing Status. If both you and your spouse were nonresidents of New Jersey during the entire taxable year, and only one of you earned, received, or acquired income from New Jersey sources, the spouse who had income from New Jersey sources may file a separate New Jersey return even though you filed a joint Federal return. The spouse with income from New Jersey sources computes income and exemptions as if a Federal married, filing separate return had been filed. You have the option of filing a joint return, but remember, joint income would be reported in Column A of Form NJ-1040NR.

[micky_123]

Thanks ebaines and Joan for these answers:

From Page 4 of the NJ-1040NR instructions:
http://www.state.nj.us/treasury/taxa.../051040nri.pdf

Married Persons and Filing Status. If both you and your spouse were nonresidents of New Jersey during the entire taxable year, and only one of you earned, received, or acquired income from New Jersey sources, the spouse who had income from New Jersey sources may file a separate New Jersey return even though you filed a joint Federal return. The spouse with income from New Jersey sources computes income and exemptions as if a Federal married, filing separate return had been filed. You have the option of filing a joint return, but remember, joint income would be reported in Column A of Form NJ-1040NR.

Since your wife has no NJ income, you can file a non-resident NJ return
with a filing status of married filing separately. You would only report
your income on the NJ return.

I understand that I have to file married filing separately on the NJ norn resident form and only list my income. My only confusion now is that since I will file married filing separately on NJ return, can I file our NY return as filing jointly and use my credits from NJ return(since I am an NY resident)?
To put it in another way, when I file NY return jointly and NJ non resident return separately, can I still compute my credits for NJ tax and use it on my joint NY resident return?

Once again thanks for your prompt replies, I cannot tell you how much I appreciate you guys. You are life savers.

[micky_123]

thanks ebaines and Joan for these answers:





I understand that I have to file married filing separately on the NJ norn resident form and only list my income. My only confusion now is that since I will file married filing separately on NJ return, can I file our NY return as filing jointly and use my credits from NJ return(since I am an NY resident)?
To put it in another way, when I file NY return jointly and NJ non resident return separately, can I still compute my credits for NJ tax and use it on my joint NY resident return?

Once again thanks for your prompt replies, I cannot tell you how much I appreciate you guys. You are life savers.

Any suggestion anyone?

[ebaines]

Yes - you file NY State as MFJ, and take the credit for tax paid to other jursidictions, no problem.

[micky_123]

Yes - you file NY State as MFJ, and take the credit for tax paid to other jursidictions, no problem.

Thanks ebaines, I really appreciate your help. This clears my confusion.

Cheers!