Should GT2 Sprocket Be Aligned with Wheels?

My pulley attached to the stepper doesn’t seem to be in line with the wheels, is this okay? or should I half-attach my pulley on the stepper. Thanks!

If the belt is rubbing along the edge of the pulley, it will wear the belt and cause it to fail sooner. You should adjust it so that the belt rides in the middle of the pulley.

As long as the pulley setscrews are in contact with the shaft, you should be fine. I’ve had to adjust mine about 1/8" out, maybe a little more, with no problems.

So I should move the pulley so that it aligns with the two bearings that tension it?

In one word : ) Yes. All the pulleys should be lined up with the idler wheels to ensure the belt runs straight between them.