Live in Indiana and have a K-1 for an estate distribution from Ohio.

Forum|Forum|1 year ago
March 2, 2025
1 reply
0 views

My Dad's estate settled this past year in Ohio and received a portion of his 401k. When doing my taxes the I can't figure out how to get the estate value out of my Indiana taxable income so I can pay the Ohio tax only. I see options for other Indiana credits and taxes. Just not sure which one to select.

Hal_Al

Employee

Q. I can't figure out how to get the estate value I can't figure out how to get the estate value out of my Indiana taxable income so I can pay the Ohio tax only. so I can pay the Ohio tax only.

A. You don't get to take it out of your Indiana taxable income. As a full year IN resident you pay IN income tax on all your income, regardless of where earned. IN will then give you a credit (or partial credit) for any tax paid to another state.

But, estate income is not usually taxable by Ohio, depending on the source. Examples of OH taxable income would be rent or the sale of real estate. Interest, dividends, capital gains on the sale of securities would not be "Ohio source" income.

valpo_ericAuthor

Thanks. Just so I'm clear once I download the Ohio TT State software and enter the K-1 information it should adjust my Indiana income tax? Agree on the estate tax however since the 401K portion of his estate is pre-tax it still is subject to Federal and State taxes. Definitely getting educated on minimizing this impact for my wife and kids when the time comes. Thanks again

Hal_Al

Employee

Q. Just so I'm clear once I download the Ohio TT State software and enter the K-1 information it should adjust my Indiana income tax?

A. No. I'm not specifically familiar with the IN software (I have Ohio). But, the generic answer is: the home state software will ask if you paid state tax to another state on some of your IN income (which includes the K-1). It will allow you to enter the OH info (yes, it usually prepopulates some of the boxes).

That said, what are the sources of the Ohio income that you think you need to do an OH return.