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March 14, 2023
Question

How do you to add only the ohio income to the ohio return. It is adding other state's income to the ohio return.

  • March 14, 2023
  • 2 replies
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2 replies

Hal_Al
Employee
March 14, 2023

 It only appears that Ohio is taxing all your income.

Ohio does a convoluted tax calculation for non-residents/part year residents. It calculates tax on total income, then it calculates a non resident/part year resident credit, which it subtracts from the tax it calculated on the total income. The credit is calculated as your non-Ohio income divided by Total adjusted Income multiplied by the total tax. TurboTax (TT)   does this by allocating your income as either Ohio or non-Ohio. W-2 income will be allocated by the state name abbreviation shown in box 15 of your W-2. TT will ask you, item by item, in the state section, how much of your other income is Ohio or non-Ohio income. Make sure that your non-Ohio wages show XX (Other state postal abbreviation)  in box 15 of your W-2 screen, with the XX amount in box 16.

 

This system allows Ohio to apply their highest tax rate, based on your total income, while only taxing your Ohio income.

Ohio has a nonresident credit allocation form.. IT NRC

March 14, 2023

Per the Ohio Department of Taxation, Ohio taxes income on all your income but allows credit for taxes paid to other states.  To enter the taxes paid to another state follow these steps:

 

  1. Enter residency status
  2. Continue through interview until you get to the "Take a look at Ohio credits and taxes" screen, click start next to taxes on income in other states
  3. click yes for "Did you pay state income taxes to Ohio and another state on the same income?"
  4. Enter State that other taxes were paid at
  5. Enter the income earned and taxes paid to other state while an Ohio resident that was taxed by both Ohio and other state

@thompson-avery21 

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Hal_Al
Employee
March 14, 2023

Both answers are correct, depending on your situation. But there may be a different answer. 

What is your situation?

1. You are a non resident (of Ohio) and are filing a return to report OH source income

2. You are a  part year resident filing to pay tax on your income while a OH resident

3. You are an OH resident with Income from another state (which state)

4. You are a resident of a reciprocal state trying to get a refund of improperly withheld OH state tax 

5.  You are a resident of a reciprocal state trying to get a refund of withheld OH city tax 

6. Something else