Filing Taxes as nonresident due to casino winnings

[mlucas7]

Good Afternoon,

So I am filing taxes for Ohio as a nonresident due to casino winnings there. I am confused in the income allocations section what I should put in the boxes, because the only income that allocable there would be the casino winnings.

But when I change out the federal income to 0 for wages and note the casino winnings for ohio specifically, it says I owe money - even though i had taxes taken out when I won there. When I hover over where it says tax due, it says my taxable income is my total income I have made, but I didn't make any of my income in Ohio.

Any help is appreciated!

[DaveF1006]

It depends on how your income was reported income on your W2G. You may have had federal taxes taken out but not state income taxes. Look in boxes 13-15 of your W2G to see if there is state tax information recorded in those boxes. Look at Box 15 specifically to see if there was state income tax withheld.

The Ohio state income tax return will initially report all income as taxable income. What the program does is give you a credit for taxes paid for income earned outside Ohio as a non-refundable credit.  Please look at the following screenshot and pay particular attention where it indicates total non-refundable credits. To get to this tax summary, go to:

• tax tools>tools>view tax summary
• Look for Ohio Tax Summary in the left pane of your Turbo Tax online Screen and then select it.

[mlucas7]

Thanks for the info! I'll go check it out and see. They definitely took out state taxes on the form, so not sure why I owe anything, since I'm sure they took out the right amount...

[mlucas7]

Okay i just was able to go and look. I guess I am not understanding why it says my adjusted gross income is equivalent to my total income, when I did not make that income in Ohio. I do see the nonrefundable credits, but do not see noted the tax money that I paid in noted on there.

Any advise on that one?

[ErnieS0]

States compute non-resident income tax in two ways. Some states set your tax rate according to what you actually earned in that state. Other states, including Ohio, base your tax rate on your total income and then make you pay that rate on your slice of non-resident income.

Lines 26-28 of your Ohio Schedule of Credits will show the “credit” you are receiving for income earned outside of Ohio. In this example, our non-resident earned $35,000 total including $10,000 in gambling winnings in Ohio. So Ohio gave a credit for 71% of income ($25,000/$35,000 non-resident Ohio income). So in this example, our non-resident owes $175 instead of $614 which would be the tax on all income ($614-$439 credit = $175).