I live in GA, am retired and on SS. I just finished filing Fed, GA and OH returns and printed them. My Ohio return includes, as taxable income, an IRA withdrawal I made. That should not be included in OH income. Where did I go wrong. It ends up being listed as income on my GA and OH returns??
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It depends. It's daunting sometimes to attempt to understand that some states will tax all income and then other states allocate income that is specific to their state.
In the case in the state of Ohio, Ohio taxes all income and the tax that you pay on all that income is credited to your Georgia return. If there were taxes charged in Ohio for all your income, you will receive a credit in Line 18 of your Ga Form 500.
In the case of Georgia, up $22,000 of your IRA distribution is excluded along with the taxable portion of your social security. As far as the IRA distribution goes, any remainder of the IRA over $22,000 is taxed. Not so bad though because you do receive a credit for income taxes paid in another state for that income.
If you still feel that Turbo Tax did this incorrectly, please speak to a live support person at this link Contact Us so they can examine your return to make sure you return was calculated correctly.
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