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Level 1
February 18, 2020
Solved

State Tax

  • February 18, 2020
  • 1 reply
  • 18 views

I am a resident of Kentucky.  I have Schedule C income all earned in Ohio.  I’ve completed Ohio state return and owe $0 tax due to business deduction.  Should the income also be included in my Kentucky return?

Turbo Tax has included it in KY taxable income.  It appears that I would get to deduct any tax paid to Ohio, but since there wasn’t any, I owe Kentucky.  Is this correctr or did I miss a box to exclude this income from KY?

 

    Best answer by AmyC

    You do have to file the income with KY and pay taxes on it. When you are a resident of a state, all income is included on your state return. The state will give you credit for any tax paid to another state on the same income. In your case, no credit since OH did not tax. 

     

    1 reply

    AmyC
    AmyCAnswer
    Level 15
    February 18, 2020

    You do have to file the income with KY and pay taxes on it. When you are a resident of a state, all income is included on your state return. The state will give you credit for any tax paid to another state on the same income. In your case, no credit since OH did not tax. 

     

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