Ohio state tax for part year resident

[glhefner]

I moved from New Jersey to Ohio October 27, 2022.  I have business income which ended when I left NJ and should only be taxed on my NJ return.  I have 1099 income from retirement, social security and IRA's which I think should only apply to Ohio for two months of 2022.  Yet my Ohio return in TT appears to be taxing me on most of my income.  How do I limit my income to the two months (16.7%) I lived in Ohio?

[Hal_Al]

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

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/generic/PIT_ITNRC.pdf

[glhefner]

I found the calculation you are referring to on the “Schedule of Credits” worksheet.  It makes sense now.  Thanks for your help.