Allocation of Wages between States

[debbiebee]

I moved from Wisconsin to Ohio.  How do I ensure that I am only being taxed on the income earned in Wisconsin by Wisconsin and the income earned in Ohio by Ohio?  I'm specifically asking about W2 income.  The Wisconsin return allowed me to identify the amount earned in that state, but the Ohio return doesn't seem to have that option.  Do I need to identify the Wisconsin income as income being double-taxed in Ohio (so as to claim the credit for taxes paid in Wisconsin) or is there something else I have to do in the software?  Thanks!

[Mike9241]

for each state, there should be a part-year/nonresident form which line by line should detail what income is being reported for each. 

[debbiebee]

Both are marked as part-year resident forms, but I haven't seen that allocation section for Ohio.

[DianeW777 · Accepted solution]

No, you do not claim a credit for taxes paid to another state on your Ohio (OH) return. It's important to review the questions in the OH return so that you are entering the income earned in the other part year state return or just the OH income when asked.

OH works differently than some states, but the same as many.  OH begins with the federal adjusted gross income and then part-year residents are entitled to the nonresident credit against the tax, for any income earned while they were a resident of another state. This will be seen on OH Form IT NRC.  

• The tax will be calculated on the annual income and then a credit will be applied to the tax. The credit amount is calculated by taking the OH income divided by the total income and multiplying the result by the total tax. This credit will then reduce the tax on the OH Schedule of Credits (line 36).

You can print your return before you file by using the instructions here: Can I print a copy of my return in TurboTax Online before filing it?

If you are using TurboTax Desktop you can switch to Forms (upper right) and review the OH forms mentioned above.

@debbiebee