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It only appears that Ohio is taxing all your income.
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 XX (Other state postal abbreviation) in box 15 of your W-2 screen, with the XX 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
Per the Ohio Department of Taxation, Ohio taxes income on all your income but allows credit for taxes paid to other states. To enter the taxes paid to another state follow these steps:
Both answers are correct, depending on your situation. But there may be a different answer.
What is your situation?
1. You are a non resident (of Ohio) and are filing a return to report OH source income
2. You are a part year resident filing to pay tax on your income while a OH resident
3. You are an OH resident with Income from another state (which state)
4. You are a resident of a reciprocal state trying to get a refund of improperly withheld OH state tax
5. You are a resident of a reciprocal state trying to get a refund of withheld OH city tax
6. Something else
I see the Take a look at Ohio credits and taxes, but I don't see the anything that says "taxes on income in other states" and therefore don't get to the question "did you pay state income taxes to Ohio and another state on the same income?" -- There is a spot on the income page that asks about neighboring states. I'm in MD.
Can you clarify if you are using TurboTax Desktop or Online?
Desktop.
Here are the details: We live in State 1. My son was at college for his last semester in the spring in State 2 (which is NOT a cooperating nearby state). Had a service industry job for 4 months in the beginning of 2024. He's still considered a resident of our home state (State 1) that time, but he did pay local and state tax to the state where his college is located in State 2. Then he immediately got a job after graduating and we had to move him to a third state (State 3). He worked there and paid taxes there. After three months or so, his job was then changed to allow for being fully remote, so to save money he moved home (State 1) and then started paying taxes to State 1. I have downloaded all three states from TurboTax. I have inputted both of his W-2s. His employer in State 3, sent their W-2 that shows wages paid to State 1 and wages paid to State 3. His employer in State 2 shows taxes paid to State 2. TurboTax asked me to complete the states in this order: State 2, State 3, then State 1 (which makes sense from what I'm reading), but then it gets to a question in State 1 where it asks about wages and taxes that were double charged. I'm not sure how to answer that. It feels like he's being double-charged since it shows that he owes State 1 a lot of money, but I'm confused -- do I simply state that his full wages and taxes paid (state and local) to State 2 and 3 are being taxed twice by State 1?
Ohio happens to be State 2 so that's how I found this thread, but I'm very concerned about how State 3 factors in and what to do with the home full-resident state (State 1) as well.
State rules vary. What are States 1 & 3? Apparently state 1 is MD?
You probably going to have to start a new thread, to get more eyes on it. Title it something like "MD credit for taxes paid to another state". MD gives a credit for tax paid to cities in other states, with some limitations.
1 is MD. 3 is CT.
You probably going to have to start a new thread, to get more MD eyes on it. Title it something like "MD credit for taxes paid to another state".
Q. Do I simply state that his full wages and taxes paid (state and local) to State 2 and 3 are being taxed twice by State 1?
A. Probably yes. MD gives a credit for tax paid to cities in other states, with some limitations.
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