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Level 1
posted Feb 5, 2021 6:39:25 PM

Ohio Non-Resident who earned $$ in Ohio, but out-of-state income is also showing in Ohio AGI

Turbo Tax Home & Business 2020 Question (Windows Version):

I lived in OH for about 3 months in 2020 and earned $$ as self-employed (NEC-1099).

I also earned W-2 income in Utah.

In the Federal return, I have selected UT in Box 15 of my Utah W-2. (According to TT online help, this is what determines which state the income will be allocated to.)

However, this Utah W-2 income is still being included in my Ohio AGI and there is no place in the Ohio return to allocate the in-state income vs. the out-of-state income.

Am I missing something?

UPDATE--OK, I went into the 'Forms' view and figured it out. In the Ohio 'Schedule of Credits' form and update Line 26 manually. After doing this, the FORM IT-NRC popped up in the list of Ohio forms and I was able to fill it in there.

 

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1 Replies
Level 15
Feb 6, 2021 6:35:10 AM

Solved by Poster.

 

For others reading this:

 

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 UT (Other state postal abbreviation)  in box 15 of your W-2 screen, with the UT amount in box 16.