Hello - I live and work in AZ. I received income and withholding from my current job in AZ. My prior company is in Ohio and I received a W2 for stock incentives (vesting) which occured in 2019 The liability is significant. Do i include all of my income and file a return in both AZ and Ohio in addition to Federal? Can i obtain a refund on local taxes in Ohio since i no longer live there and did not perform work there in 2019? Thank you for any insight.
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Yes.
As Ohio taxes all income sourced to Ohio sources for nonresidents, you will need to file a nonresident return for OH.
You will also need to report all of your income in Arizona. However you will be able to claim a credit for the taxes you paid in Ohio. This ensures you are not taxed on the same income twice.
I recommend reviewing your input as follows to ensure all items are picked up correctly within each return.
Review your entries in the My Info section of TurboTax located in the black panel on the left. Confirm that you have entered the correct state information:
Review your information in Lines 15-17 in the W-2 input section in the federal income section. Make sure any withholdings and income are reported by the state they are earned in and as reported on your W-2 form.
Prepare the Nonresident Ohio state tax return first. Pay attention to the questions to ensure only the income you earned in this state is reported.
Once you have entered all of the Ohio information, then start your Arizona return. This will ensure you receive any credits for taxes on income which may have been taxed in both states. You will see a section under credits titled Credits for Taxes Paid in Another State. Be sure to complete this section. This will ensure you receive credit for the taxes paid in Ohio.
Thank you --- I did not live in Ohio any time during the year - the W2 event in Ohio was for stock vesting and sale i am not sure if that makes a difference.
In this case, it does not make a difference.
Since it appears the stock vesting was from a company located in Ohio, reported on a W-2 Form, and not part of a state with reciprocity, you will still need to file the nonresident Ohio tax return.
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