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February 19, 2024
Question

Ohio State Taxes

  • February 19, 2024
  • 1 reply
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I reside in Texas and a portion of my wages were earned in Ohio. Why is the Ohio state tax using my federal wages to determine state taxes owed? My state wages earned in Ohio are a small portion of my overall income.

    1 reply

    DMarkM1
    February 19, 2024

    Yes.   OH starts with the Federal Adjusted Gross income (AGI) and then allows OH only deductions to arrive at OH AGI as if a resident.  The resident OH tax is figured based on that OH AGI.  

     

    Then based on the allocations of non-OH source income made in the OH interview, non-OH source income divided by the OH AGI gives a proportion which is then multiplied by the OH tax as if resident.  

     

    That yields the OH non-resident credit that is subtracted from the OH resident tax.  The remainder is the OH non-resident tax.  

     

    From there credits such as withholding are subtracted to arrive at a net tax/refund.

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