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Situation is NY state resident but wages earned in Cleveland OH. Income earned in OH is below threshold to file OH state taxes, but income tax had to be paid to Cleveland Dept of Taxation Central Collection Agency. Turbo Tax doesn't seem to have a way to account for taxes paid to local tax authority to get credit on NY income tax for taxes paid to non-NY local tax authority. Any advice appreciated.
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According to the NY dept. of revenue web site, NY does give a credit for local, as well as state, income tax paid in another jurisdiction. I'm not specifically familiar with the NY software, but that typically comes up on the credits screen and is known as the resident credit.
You are entitled to claim this nonrefundable credit for the tax year if:
Credit, no. Itemize, yes. If you are itemizing on your NY return, the local taxes paid are part of the calculation. See Itemized Deductions.
In 2015, the Supreme Court said no double taxation by states. States will give a credit for state tax paid. The local tax is not part of the agreement for a tax credit.
According to the NY dept. of revenue web site, NY does give a credit for local, as well as state, income tax paid in another jurisdiction. I'm not specifically familiar with the NY software, but that typically comes up on the credits screen and is known as the resident credit.
You are entitled to claim this nonrefundable credit for the tax year if:
I found that when in Credit for Taxes Paid, Taxes Paid to Another State, when picking the state scroll to the bottom of the list and pick Local Government as the "state" and enter the local entity name. On subsequent screens when it asks for Portion taxed by other State, other state tax paid, etc., I assume that also applies to Local Government.
Yes, just think in terms of taxing jurisdiction or authority. Replace the term state with the term local.
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