topic Ohio Schedule of Credits Line 28 Calculation Problem in State tax filing

Ohio Schedule of Credits Line 28 Calculation Problem

AnnaMarie2 — Fri, 05 Mar 2021 22:58:41 GMT

I am looking @ the Ohio Schedule of Credits generated by TurboTax. In this schedule line 28, there is a very straight forward calculation:

Divide line 26 by line 27 and enter the result here.

For Example:

LIne 26 100,000

Line 27 25,000

Line 28 4 this is the answer I get

Line 28 1 this is the answer TurboTax calculates (seems incorrect to me).

Question: has anyone else seen a similar result ????

Re: Ohio Schedule of Credits Line 28 Calculation Problem

MaryM428 — Mon, 08 Mar 2021 01:50:16 GMT

Please send us a diagnostic copy of your tax return so we can investigate why you are getting the incorrect number on Line 28 of the Ohio Schedule of Credits.

From the desktop version,

Select Online at the top of the page

Send my file to Agent

This will create a copy of your tax return with all of your personal information removed. We can then use that file to diagnose the problem with your form.

Post the six digit code here and we will diagnose the file and get back to you with a solution.

Re: Ohio Schedule of Credits Line 28 Calculation Problem

AnnaMarie2 — Mon, 08 Mar 2021 03:17:04 GMT

token#770473

Re: Ohio Schedule of Credits Line 28 Calculation Problem

Hal_Al — Mon, 08 Mar 2021 13:41:05 GMT

line 26 is always smaller than (or equal to) line 27.

Note that there is an unnumbered line between lines 27 and 28. There you put the result of line 26 divided by line 27, a decimal (fraction/factor), less than or equal to 1.

Line 28 is that fraction multiplied by line 25. That is your non resident tax credit.

I tested it in desktop Deluxe, it's working correctly.

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.

Re: Ohio Schedule of Credits Line 28 Calculation Problem

MaryM428 — Tue, 09 Mar 2021 03:09:48 GMT

We've reviewed the diagnostic file and the credit appears to be working consistent with Ohio law for the nonresident credit, (although the form is worded oddly.)

Champ Hal_al explains how the Ohio non-resident tax credit is calculated.

@AnnaMarie2

@Hal_Al