Pennsylvania Schedule g-L

[joho3]

It does not appear that this schedule is working correctly.  I live in Pennsylvania and paid Ohio tax on a limited partnership return to Ohio.  The Ohio income is $1503, the Ohio tax paid is $60.  It appears to me that I should be getting a credit of $46 (1503 * 3.07%).  It is calculating $13.  I am entering the 1503 on the rents, line for both Ohio and Federal and $60 on the Ohio tax paid line.

[DianeW777]

First, since you know how much the Ohio (OH) tax is on the OH return, you should check closely to see if there is actually tax liability after any possible credits or deductions.  The credit for tax paid to another state on the same income will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state

If the actual OH tax liability is less than what Pennsylvania (PA) tax would be then the credit will be lower.

@joho3 

[Edited: 03/30/2022 | 7:22a PST]

[joho3]

Thank you, I understand that, the actual tax liability is $60 for Ohio, and the PA tax on $1503 would be $46, so i should get a  $46 credit.  Turbotax is calculating $13, seemed to work last year.

[DianeW777]

Apologies for missing that amount in your first question.  You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

TurboTax Online:

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax CD/Download:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number then place in this issue.
4. We can then review your exact scenario for a solution.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

[Hal_Al]

Rental income is usually eligible for the Ohio Business Income deduction (BID), even if it isn't eligible for the federal QBI deduction.  You may (probably) get a full refund of the OH withholding. So, the amount of the PA credit will be moot.  

[joho3]

Thank you for your response.  I am not filing in Ohio, it is just a credit on a Pennsylvania partnership that files in Ohio so no Ohio business deduction.  I, however, did determine that another partnership with a loss offset some of my Pennsylvania income in the partnership with the Ohio credit.  So I did determine that my credit is limited to 3.07% of the net partnerships income.