g-dizzle0
New Member

I moved from Texas to Ohio on June 28, 2017, but it appears that TurboTax is saying I owe OH income tax on the income I earned while I lived in Texas. How do I fix this?

 
DanielV01
Expert Alumni

State tax filing

It depends.  Ohio does not tax the income you earn in Texas, but the income is factored in to calculate your overall tax.  

Ohio does not have a true part-year or nonresident form, so for part-year and non-residents, all of the income is calculated as taxable in Ohio, applying any deductions and credits allowable against all of the income, and then a credit is applied back to the nonresident portion of income (income earned outside of the state is not taxed).   The net result is the Ohio tax liability.  

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g-dizzle0
New Member

State tax filing

Thank you this makes sense. How can I be sure/check that Turbotax is applying a credit back to the non resident portion of the income? Before I put the OH income in, I was receiving a $2500 Fed refund. Once I input the OH income it changed to $800 owed to Fed, that is a big jump.
DanielV01
Expert Alumni

State tax filing

Two different things.  Fed  is the IRS and does not have anything to do with the Ohio return.  The Fed amount can change significantly because if your income goes up, you may not qualify for certain credits and you get into higher tax brackets.  Your Ohio tax situation will be marked with OH on the left-hand side of the screen.  It's a good idea not to pay attention to the Fed number until all of your situation is complete because of the way how tax is calculated in the program.  Until it is all entered, though, the program assumes that what is entered to that point is your complete situation.  Since it isn't, it can be a bit misleading in that way.
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g-dizzle0
New Member

State tax filing

Yes of course. Makes perfect sense. Thank you. So when I complete TurboTax and pay I will see the completed OH Scheule of Credits form?

One last thing. I received a severance check when I was living in OH in 2016 for work I did in TX in 2016. The company withheld OH income tax $ and this is listed on lines 15, 16, 17 of the W2. I included this info in turbotax for the TX W2. Does turbotax "know" that those $ were earned in TX before my move to OH? And will Turbo do the correct calculations taking into account how much $ tax to OH I already paid?
DanielV01
Expert Alumni

State tax filing

You'll have to go through the Ohio return and look for allocation screens.  However, Ohio may argue that it is income taxable in Ohio because you received it after you moved there, although from your prior Texas job.
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g-dizzle0
New Member

State tax filing

I completed my return, paid TurboTax, and reviewed the Ohio return forms. The allocation screens are incorrect. The Ohio IT NRC form inaccurately reflected my Ohio and non-Ohio incomes - Turbo Tax applied the ratio of days I lived in OH to non-OH days and then divided my total wages by that ratio to say what I earned in OH vs what I earned in TX. This is not the reality - I earned a lot more in TX than I did in OH. I want this to be corrected but I do not see the option to correct it and then e-File. How do I fix this? Similarly, my Health Care Entry Sheet was also not completed correctly by Turbo Tax, I need to fix this as well.