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March 22, 2024
Question

Enter portion of Ohio adjusted gross income that is subjectedto tax by another state or the District of Columbia.what does this mean in simple terms?

  • March 22, 2024
  • 2 replies
  • 0 views
I had a job in PA but lived in OH. I also had a business run from home. Which income are they asking about?

2 replies

Employee
March 22, 2024

Did you get a W-2 for your job in PA?  If so, did it show any PA state taxes withheld?

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Hal_Al
Employee
March 22, 2024

Simple answer: the business income. 

 

PA & OH have a reciprocal agreement on wages. Your wages are not taxed by PA.  But, the reciprocal agreement does not apply to self employment income. 

 

If you  earned business income by working in PA, you have to file a PA return to pay PA tax on the portion earned in PA.  OH will give you a credit or partial credit for the tax paid to PA.   

 

If you mistakenly paid PA tax on your wages, OH will not give you a credit for that. You have to get it back from PA.