Part Time Ohio Resident

Forum|Forum|6 years ago
February 14, 2020
4 replies
90 views

Help- Im confused. I moved from Ohio to Arizona in June. My income is pretty much 50/50 in each state, however,whenI print my ohio tax form, it is showing that its taking my total income earned to determine my ohio state taxes. I do not see anywhere that it asksme to split my income by state. I have made sure that my W-2's and my 1099's are entered properly by state. Am I doing something wrong? Where do I look?

Best answer by 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 AZ (Other state postal abbreviation) in box 15 of your W-2 screen, with the AZ 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.

J

JamesG1

Level 15

You believe that you are part-year Ohio and part-year Arizona? Do the W-2’s show the correct states in box 15 of the W-2’s? See here.

What kind of 1099 income are you referring to? Was it earned in one state or the other? Or both?

Ohio tax is computed on total income (OH & AZ). This number is then multiplied by a percentage based on non-Ohio income compared to Ohio adjusted gross income.

It can be disconcerting to see this if you do not follow what is going on.

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B

byugrad84Author

Level 2

The 1099's are split by state- I have 2 pension 1099's and 3 401K 1099s.

Hal_Al

Answer

Level 15

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

M

miltharris

Level 2

I had almost the identical issue for 2022 since I moved from AZ to OH midyear. It was alarming and illogical to see my entire Federal AGI as my taxable Ohio AGI. I should have looked here first to understand. The Turbotax agent I spoke with didn’t have a clue! Once I saw the big non-refundable OH tax credit I was calmer and assured Turbotax had calculated correctly, and that Ohio just had an odd way of calculating my part-year resident tax.