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Income in non-resident state

I live and work in California. A small portion of my income is from a  Fellowship for work I do with Ohio University. I have received a W-2 from Ohio University with California taxes withheld. There were no taxes withheld for Ohio. On what form and line do I report my Ohio University earning on the Ohio tax return ?

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1 Best answer

Accepted Solutions
Hal_Al
Level 15

Income in non-resident state

If you physically worked in Ohio, you file an Ohio non-resident tax form.  It's the same form residents use, you just check the non resident box (TurboTax [TT] does that for you). It goes on line 1, column (B) of  IT NRC
Ohio Nonresident Credit Calculation. TT does that for you. 

 

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 CA in box 15 of your W-2 screen, with the CA amount in box 16.

If your employer did not break down your W-2 between OH and CA, you'll have to do that manually, making two entries on lines 15-20. 

This system allows Ohio to apply their highest tax rate, based on your total income, while only taxing your Ohio income.

Ohio has a nonresident credit allocation form.. IT NRC

https://tax.ohio.gov/static/forms/ohio_individual/individual/2022/itnrc.pdf

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4 Replies
MaryK4
Expert Alumni

Income in non-resident state

If you did not work in Ohio, you do not have to report the income to Ohio as a nonresident.

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Income in non-resident state

I did work in Ohio which is why I received a W-2 from Ohio University.

Hal_Al
Level 15

Income in non-resident state

If you physically worked in Ohio, you file an Ohio non-resident tax form.  It's the same form residents use, you just check the non resident box (TurboTax [TT] does that for you). It goes on line 1, column (B) of  IT NRC
Ohio Nonresident Credit Calculation. TT does that for you. 

 

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 CA in box 15 of your W-2 screen, with the CA amount in box 16.

If your employer did not break down your W-2 between OH and CA, you'll have to do that manually, making two entries on lines 15-20. 

This system allows Ohio to apply their highest tax rate, based on your total income, while only taxing your Ohio income.

Ohio has a nonresident credit allocation form.. IT NRC

https://tax.ohio.gov/static/forms/ohio_individual/individual/2022/itnrc.pdf

Income in non-resident state

Thank you for your detailed explanation. It was extremely helpful.

 

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