Hi I have a question.
I moved to Indiana on December 20, 2018 from Ohio where I worked for company A.
I got a new job in January 2019 at company B in Indiana.
I received my final payment from company A on December 31, 2018, however their payroll ended January 11, 2019.
Today I received a W2 for that final pay from company A. As a full year resident of Indiana in 2019, how do I file my state taxes? Ohio obviously withheld taxes due to me living there in 2018. Do I file Indiana full year and Ohio non resident? When I add Ohio W2 into Turbotax my Indiana refund goes to owing, along with Ohio going from $0 to owing as well. I'm a little confused.
Any help is appreciated!
File your 2019 return as a full-year resident of IN.
If you want a refund of the incorrectly withheld OH taxes, you'll also have to file a non-resident OH return, showing zero OH income.
That's sort of where I am confused, they weren't incorrectly withheld. The error is that company A included it on a later 2019 payroll rather than when I received the payment in 2018. If that doesn't matter as I received it while living in Indiana, how do I file showing $0 Ohio income? As in, where in turbotax is that? On the non resident form?
If your 2019 W-2 shows OH withholding in Box 17, you'll have to request a refund by filing a 2019 non-resident OH tax return.
You will enter the zero OH income on the non-resident OH return.
It's not necessary to use TurboTax for this. Ohio offers a free fill-in PDF tax return here: https://www.tax.ohio.gov/portals/0/forms/ohio_individual/individual/2019/PIT_IT1040_Bundle_FI.pdf
You may want to attach a letter explaining why your return shows zero OH income.
Thank you. Last question...is the fact that adding this W2 for federal in Turbotax the reason I now went from a small state refund to owing Indiana? Is it because Indiana is treating this income as taxable by Indiana and not received yet?