Multiple State Taxes

[ETMJ]

I am working on my daughter's tax returns.  in 2024, she was a resident of Ohio, and a non-resident of New York City where she went to school and did some work.  Since then, she had graduated and spent the entire 2025 as a resident of Brooklyn.  After the beginning of the year she obtained a new license, etc.  On the 2025 federal, I indicated she was a NYC resident.  On the Ohio, I indicated she was a non-resident of Ohio.  The issue is, in 2024 she filed an Ohio tax return (along with the school district tax she owed), as well as a NY.  This year, due to an error on her employer (?) Ohio withheld an amount.  Ohio should not have withheld any.  When I do the taxes on desktop, it only shows an Ohio refund of $84, when they withheld $516.  Should the refund be the entire $516 from Ohio?  It looks like the NY taxes her entire wages, but what should I be careful of there?  Should I look for a tax credit to Ohio on the NY tax?  How do I get the entire Ohio withheld, including the school district taxes withheld back?

I did both New York State and Ohio returns, thinking Turbo tax would adjust, but still only the $84 refund, not the $515

[AmyC · Accepted solution]

You have a legal document (w2) saying income was earned in Ohio so you have to let OH know that is wrong.

OH: 

• You have to indicate nonresident and mark that $0 was earned in Ohio. 
• File the SD-100 and claim nonresident for the entire year to get a refund from the school district.
• Follow these steps:
  1. Open the OH nonresident return
  2. Continue past OH income 
  3. Continue past OH credits and taxes
  4. Select Done with Credits and Taxes
  5. Income allocation screen shows two boxes, one for federal and one for OH. Enter 0 for Ohio income.
  6. Continue through return

NY:

• If OH is not taxing your daughter, NY has no reason to give a credit. 
• NY is the resident state so it taxes all income from everywhere. 
• If she paid OH taxes, then NY would offer a credit to offset that same income. The credit will be the lower of the state tax liabilities on the same gross income. You may owe your resident state,  if they have a higher tax rate along with differences in how the taxable income is calculated.

[ETMJ]

I followed the directions below, and when I select done with credits and taxes, I do not get an income allocation screen.  I get additional business apportionments question, I answer no, also no to the donations.  The next screen is other tax situations, then ready to check. 

I do not see the income allocation screen.  How do I get to that income allocation screen with 2 boxes?

BTW, I indicated she was a resident of NY on federal, and indicated a non-resident on Ohio.  IT1040 shows as non-resident, but the Ohio non-resident statement is unchecked 

[ETMJ]

Nevermind.  I switched to forms, went to form IT NRC, and found the boxes.  Cleared it right up.

Thank you