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Ohio joint filing credit

Forum|Forum|3 years ago
February 27, 2023
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We do not live in Ohio, but I file a nonresident Ohio return each year because my wife has some income there. I have no Ohio income, but do have retirement income. Our situation has been the same in 2021 and 2022. In 2021, Turbotax did not call my retirement income Ohio income, so no joint filing credit. (I think this is correct). The 2022 software is giving me credit in Ohio for my retirement income, even though I don't live there. So the software is giving us the joint filing credit this year, which I think is incorrect.

Best answer by Hal_Al

You are actually allowed the Ohio joint filing credit, (JFC) in your situation.

Ohio does a convoluted tax calculation for non-residents/part year residents. It calculates tax on total income, including any allowable credits, like the JFC. 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.

B

Bob672Author

I didn't really state the problem, which is that, as far as I can tell, the software will not allow overrides, so I have no way to correct the Ohio return to what I think it should be. Any suggestions?

Hal_Al

Employee

Deleted

B

Bob672Author

Thanks for the response. I agree with your thinking, but box 15 is empty. We live in a non-taxing state. Definitely no mention of Ohio anywhere on the 1099-R.

Hal_AlAnswer

Employee

You are actually allowed the Ohio joint filing credit, (JFC) in your situation.

Ohio does a convoluted tax calculation for non-residents/part year residents. It calculates tax on total income, including any allowable credits, like the JFC. 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.