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Level 2
March 1, 2022
Solved

Ohio State Tax non resident

  • March 1, 2022
  • 1 reply
  • 4 views

I live and work in Texas.  My wife owns a rental property in Ohio.  The only Ohio money made is the money from that rental property.  It is about $6,000.  When I go through Turbotax and claim this along with the tax and insurance I have to pay it says we owe Ohio $103.  Seems strange that making so little that we have to actually pay.  I did notice that our federal income is listed on the Ohio state tax return.  

 

Does this sound right to you or should I leave out my federal income?

    Best answer by DianeW777

    I thought that was what I did.  I'll have to go back and check.  I'm pretty sure the only thing I put was the rental income coming from Ohio.


    You will  have tax to pay in Ohio.  Ohio will look at the federal adjusted gross income (AGI) then divide the Ohio AGI by that total to determine the portion of Ohio tax due on your rental property income.

     

    It will be determined on the OH IT NRC form and a credit will be used to reduce the tax to reflect only the Ohio portion. See the OH IT-1040 section that will populate.

     

    You can preview your Ohio IT-40 by using the link below. You can select the Ohio return from the menu on the left.

    If Texas had a state tax you would receive credit in your resident state, however since they do not have income tax there is no credit for you to receive.

    @Seidelus

    1 reply

    KrisD15
    Level 15
    March 1, 2022

    No, it does not sound right to be reporting Federal income to a non-resident state.

     

    You need to allocate only the rental income to the Ohio State return. 

    You should be filing a non-resident Ohio return. 

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    SeidelusAuthor
    Level 2
    March 1, 2022

    That's what I was thinking.  I'm going through the TurboTax software which I thought would have accounted for that when I selected non-resident.

    Level 15
    March 1, 2022

    In addition to saying that you are a non-resident, you have to allocate your income to Ohio.

     

    A few screens into your Ohio state return, your will see a screen called, Income Allocations. Every line in the Ohio column should have a figure, enter 0 if the income is not taxable in Ohio. 

     

     

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