Question

Turbo Tax state return for Ohio is in error giving us a joint filing credit. Appears to be no way to manually override the credit

Forum|Forum|4 years ago
March 14, 2022
2 replies
0 views

I have the problem that Turbo tax is GIVING me the Ohio joint filing credit, yet, my wife earned no income in Ohio. I reviewed my federal return and indeed no income was assigned from Ohio. She did have unemployment compensation from New York that was identified as New York

So, how do I override that error I am describing? I want to remove the credit, yet there appears to be no way to do that.

Larry

AmyC

Employee

In Ohio, after the joint filing credit shown on Ohio Credits and Taxes comes the income allocation screen. When you enter only your Ohio income in the correct categories, it should realize that you do not qualify. You may need to put zeroes in those boxes.

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Hal_Al

Employee

You do qualify for the Joint Filing Credit (JFC). The JFC is based on all your income, not just your Ohio source income. This is true whether you are filing a resident, non resident or part year resident return.

L

lvragerAuthor

Appreciate replies

On the income...

Turbo tax help link says the following...

T"he Ohio joint filing credit is a tax break for people who file their taxes with their spouse. To qualify, both spouses need to have $500 of Ohio income and owe enough Ohio tax"

My wife lives in NY and has no Ohio income.

Please reply again

Thanks

On the "Income allocation screen"

I am using Premier and there is no such screen

It seems Premier takes all my Fedral entries and just allows me to edit special circumsatnces

There is no edit screen for income allocation

Please reply again

Thanks

Larry

Hal_Al

Employee

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.

Because tax is calculated on all your income (and your spouse's on a joint return), you are allowed the Joint Filing Credit (JFC) on all your income, not just your OH income. In the "forms mode", look at the Joint Filing Credit Allocation Worksheet. This is where your net qualifying income is calculated. It shows on line 4.

The non resident 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 (if any) show NY in box 15 of your W-2 screen, with the NY amount in box 16.