topic When I fill out my Ohio State tax forms the Ohio form IT NRC is capturing my Ga Earnings and using them for my wife who is the non resident of Ohio. Is there an error? in State tax filing

When I fill out my Ohio State tax forms the Ohio form IT NRC is capturing my Ga Earnings and using them for my wife who is the non resident of Ohio. Is there an error?

tax4leinbach — Mon, 03 Jun 2019 18:47:35 GMT

Ohio tax forms allow a joint filing with me as an Ohio Resident and my wife as a nonresident as she lives in Ga. But the nonresident form to calculate earnings is loading my W2 earnings and not my wife's earnings which were not on a W2 but were from capital gains only.

There's no error. IT NRC does not distinguish income by s...

Hal_Al — Mon, 03 Jun 2019 18:47:37 GMT

There's no error. IT NRC does not distinguish income by spouse, only by state (resident or non resident)

It puts the resident income in the nonresident income fie...

tax4leinbach — Mon, 03 Jun 2019 18:47:40 GMT

It puts the resident income in the nonresident income field that goes in Section A on the IT NRC form. That seems like a definite error

I see you have desktop software (rather than online). You...

Hal_Al — Mon, 03 Jun 2019 18:47:43 GMT

I see you have desktop software (rather than online). You can make the changes directly on the form.

That said, if the income items are in the wrong place, you entered them in the wrong place, in the interview. The interview is a little tricky. Sometimes it asks for Ohio income and other times for non-Ohio. Wages had not entered in the interview, but from the W-2
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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. The 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 show GA (Other state postal abbreviation) in box 15 of your W-2 screen, with the GA amount in box 16.

I entered myself as the resident and my wife as the nonre...

tax4leinbach — Mon, 03 Jun 2019 18:47:44 GMT

I entered myself as the resident and my wife as the nonresident on the Ohio forms yet it pulled my W2 Income which was marked GA into the nonresident data field. So the software is going by the state field on the W2 without regard for which person that W2 was for as it is clearly marked as my income on the W2 with my SSN. The forms correctly pulled my out of state income into those calculations and gave me another credit for income tax paid into another state as a resident. In effect, it credited this out of state income twice when it should have used it only once for the resident out of state taxes paid

my wife had no W2 income by the way. I had W2 income fro...

tax4leinbach — Mon, 03 Jun 2019 18:47:45 GMT

my wife had no W2 income by the way. I had W2 income from Ohio and GA

Yes, you're filing joint return; so, it's going by the st...

Hal_Al — Mon, 03 Jun 2019 18:47:47 GMT

Yes, you're filing joint return; so, it's going by the state field on the W2 without regard for which person that W2 was for.
As to the "credit for income tax paid into another state"; you'll get a box with the amount of income double taxed pre-populated. You have to look at that number closely. It may be (frequently is) necessary to figure out the right number to enter there (change the pre-populated amount).

Your best bet may be to use "override" and make your entries directly on form IT NRC

agree but the software should not ignore that the W2 was...

tax4leinbach — Mon, 03 Jun 2019 18:47:48 GMT

agree but the software should not ignore that the W2 was for the resident and not for the nonresident as it then incorrectly creates a nonresident credit and the average user would not know that was an error and would misfile their taxes . I do thank you for confirming that it requires a manual override

You said "I had W2 income from Ohio and GA". So that res...

Hal_Al — Mon, 03 Jun 2019 18:47:49 GMT

You said "I had W2 income from Ohio and GA". So that results in a Resident credit for you (assuming you paid GA tax), in addition to the non-resident credit for her. You do have an additional complication.