Why don't we qualify in 2020for an Ohio joint filing tax credit when our income and taxes owed are very similar to 2019 when we did, with similar income and taxes paid?

[lvrager]

I appreciate the effort to analyze my return

Though, I do not understand why Part B of the Ohio NRC form would be edited. At no time was my spouce a part time resident of Ohio. (full time NY)?

Also, I do not understand where the override number you suggest I enter in Part B is generated from.

And why do I need to override - and lose my TT support - When I entered everthing correctly on the federal form?

Again,

I appreciate the time

Larry

[DianeW777]

The capital gain is taxable to OH in my scenario.  I was unable to tell if it was jointly owned and assumed it was the taxpayers. As such it was not being counted as taxable for OH so this is the first edit to include it in the OH Amount column.

The second override (Part B) is the unemployment compensation that should not be taxed to OH (only NY) and has been entered as a deduction to reduce the OH income before calculating the percentage of income that should be taxed in OH.  

This reflects an accurate tax rate for the income that should be taxed to OH.  I hope this explains the nature of the suggested overrides.  I suggest printing and mailing the OH return.

@Ivrager

[Hal_Al]

No overrides should be needed.  If the unemployment is identified as the spouse's income and the spouse is identified as a non-resident, all her income will be non Ohio income for the non-resident credit.

It may only show (with her other income) in part C of IT NRC and on line 30 of the Schedule of Credits.

[lvrager]

Let's examine your addition of capital gains please...

On the bottom of the Joint allocation work sheet it is stated that capital gains are not part of Ohio qualifying adjusted gross income.

Please comment why included then.

Larry

[Hal_Al]

Capital gains are not part of  qualifying Ohio adjusted gross income, for purposes of  qualifying for the Joint Filing Credit (JFC). 

Capital Gains are part of  Ohio adjusted gross income, for purposes of allocating income as Ohio or non Ohio income, for the Non resident tax credit.  If the gain is jointly owned by both spouses (as it usually is) then your half  is allocated as Ohio income on IT NRC but not on the JFC worksheet.

Your situation is very rare. But, the Ohio forms and TurboTax program are able to handle it, just not very transparently. 

[lvrager]

Hal_Al

Thanks for your expertise

The Capital Gains is my own (not joint)

Does that change your last reply?

PS

I see that latest TT update is asking me to override the IT NRC form by allocating the Capital Gains as Ohio income - therefore increasing my Ohio tax liability

[Hal_Al]

In the federal interview, you are asked to identify who the income (capital gains in this case) belongs to.   Even if you make a mistake there, the Ohio interview should allow you to change it.  You will be asked how much of the capital gain is OH income.  Enter 0.  If the box is prepopulated, change it to 0.