I haven't filed a NY return lately but most states will
calculate the state tax on total income (jointly) and then
take a ratio of income allocated to that state over total
income. Some states, like PA, may allow the spouse to file
married filing separate, but that may not be the most
advantageous. Even if a state allows a different filing
status, Turbotax may not support it.

Income allocated to that state is determined by when the
income was received. For example, capital gains would have
a sale date and would be allocated to the state of residence
at the time of sale. Income earning evenly throughout the
year should be divided among the states according to the
number of months you lived in each state.

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My wife came from NY to CA, so she has been part time NY
resident, and has made some earnings there. I have lived in
CA all 2004.

Using TurboTax, when i fill in for NY, it mentions my name
and my wife's names both in NY. It gives an impression that
I have lived there. I have only one W-2 from CA, so it looks
odd to me. Shoud not my wife's name be there ONLY?

Second question: My wife has lived 6 months in NY and the
later in CA. She has some capital earnings (1099) from her
banks. Should they be split 50-50% b/w two states?

The added complication is that she has schedule-D from some
partnership in NY. She stopped working for the comapny after
she moved to CA.

Thanks

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