You can't net out the two states. They go in different places on your tax return. The WI refund is reported as income, and the OH payment is an itemized deduction on Schedule A.
The WI refund will only be reported as income on your 2016 federal tax return if you itemized deductions on your 2015 federal tax return and took an itemized deduction for state income tax.
For the OH payment to reduce your 2016 federal tax, you have to itemize deductions on your 2016 federal tax return and claim an itemized deduction for state income tax paid in 2016. You wouldn't itemize deductions unless your total itemized deductions, including the payment to OH, are more than your standard deduction.
