Ohio credits

Forum|Forum|3 years ago
February 6, 2023
6 replies
29 views

Unless I'm missing something it appears that Turbotax is not applying credit for income earned in Ohio while being a full-time resident of WV. Anyone else notice this?

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Hal_Al

Level 15

It's not clear if you're filling out an Ohio return or a WV return. WV will not give you a credit for tax paid to or withheld by OH.

Ohio has a reciprocal agreement, on wages, with all neighboring states. No Ohio state taxes are withheld or due and you do not need to file an OH return. But your home state will tax you on your Ohio income.

Only If Ohio taxes are mistakenly withheld, would you have to file an Ohio return to get a refund. You should ask your employer to stop withholding so you don't have to file an Ohio return every year.

However the reciprocity agreement does not apply to local city taxes. You are not required to file a local city return, but you are also not entitled to a refund of the city withholding (box19 on your W-2), unless there was an error in the amount.

If you're filing an OH return to get a refund; all of your income is to be allocated to non-Ohio. Since some of your W-2 income has been allocated to OH, you need to re-enter that amount in the box titled “Compensation Earned in Ohio”. That box is specifically for the wage/salary income of full year residents of reciprocal (neighboring) states.

82986Author

Level 2

You are correct in that I'm filing an Ohio state tax return to obtain a refund. I'm doing it this way so that I have the Ohio refund money to pay the WV taxes due. Turbotax is calculating that I owe Ohio. On the paper forms, I'm showing that Ohio owes me the entire amount they withheld.

Hal_Al

Level 15

You are correct, Ohio owes you the entire amount they withheld.

Be advised that you may have to use a work around to get TT to prepare the return to get you your refund. At the w-2 screen split the boxes 15-20 W-2 info into 2 lines. On the 1st line leave OH in box 15 but make box 16 blank; leave the OH withholding in box 17. On the 2nd line put your home state abbreviation in box 15 and the state wages amount in box 16; leave box 17 blank..