topic We started working in a different state; later in the year, you moved to that state. The online edition wont let me file non-resident since its my CURRENT resident state? in State tax filing

We started working in a different state; later in the year, you moved to that state. The online edition wont let me file non-resident since its my CURRENT resident state?

brittany-moeves — Tue, 04 Jun 2019 01:08:33 GMT

My husband worked at a KY job all year. We lived in Ohio for the beginning of the year, then moved in mid-March to KY. Ohio state tax was pulled for the beginning months, then KY for the remainder, however KY states his taxable income as the TOTAL amount earned for the year. Tried to complete non-resident of KY for the portion f time we lived in Ohio, but it is getting kicked back saying we cant file non-resident since our current mailing address is KY?...

It depends. In TurboTax, you want to select that you wer...

DanielV01 — Tue, 04 Jun 2019 01:08:35 GMT

It depends. In TurboTax, you want to select that you were part-year residents for both Ohio and Kentucky. Each state return will ask you the dates you were a resident, and that should take care of the error you are seeing.

I notice you are quoting from one of the FAQs which discuss your situation, but yours is a little different because Ohio and Kentucky are reciprocal. Since you correctly informed your company that you were living in Ohio and then moved to Kentucky, your income was taxed to each state (separately) for the portion of the year you lived in each.

However, the reciprocal agreement does not apply this year because you moved into Kentucky. The following is taken from the KY part-year/nonresident instruction form:

Persons moving into Kentucky must report income received from Kentucky sources prior to becoming residents and income received from all sources after becoming Kentucky residents. (Italics added)

Thus, KY will tax all of your income for last year, but you will be able to claim a credit for the tax you paid to KY while you were an Ohio resident on the Ohio return. Prepare the KY return first to determine how much tax you must pay to KY on that income, and then you can enter it in to have the credit calculated for OH.

[edited 3/16/17]

Just to clarify on the wording... the Ohio part-year resi...

brittany-moeves — Tue, 04 Jun 2019 01:08:36 GMT

Just to clarify on the wording... the Ohio part-year resident form asks the following "income you earned while an Ohio resident that was taxed by both Kentucky and Ohio." It wants to know DOUBLE taxed income. From what our pay stubs reflect, the income was never taxed by both states at the same time. Just Ohio while we were OH residents and KY while we were KY residents. Do I still enter in the total income as well as the tax KY deducted during the second half of the year since it was taxed by 2 states over the course of the whole year?

It seems like both states want to give us a credit for th...

brittany-moeves — Tue, 04 Jun 2019 01:08:38 GMT

It seems like both states want to give us a credit for the taxes paid to the other state. Each state says to complete the opposite one first.

I apologize, my answer was backwards. Ohio will give you...

DanielV01 — Tue, 04 Jun 2019 01:08:39 GMT

I apologize, my answer was backwards. Ohio will give you a credit for the tax you paid KY while living in Ohio. Please see my answer edit.

Thus, the double-taxed income is the Ohio income. Since...

DanielV01 — Tue, 04 Jun 2019 01:08:41 GMT

Thus, the double-taxed income is the Ohio income. Since KY is taxing everything, you are getting double-taxed on the Ohio portion. You should not have a credit for KY, just Ohio.