husband and wife live and work in two different states- turbo tax is calculating state taxes on joint income in both states

You can file joint Federal and separate state returns if this is allowed by your state's law.

You can use TurboTax Online to file separate state returns, but we recommend you use the TurboTax Desktop software version to do this because you'll only need to pay for one TurboTax product (you can file up to five returns).

Please check here for instructions.

Q. TurboTax is calculating state taxes on joint income in both states?

A. Probably not. It only looks that way, at first glance.

Most states start with your total income, and then apply a percentage/ratio to either the income or the calculated tax. 

For more specific advice, you should identify the states,