Working in Columbus, OH and Living In California.

[peyman_np]

My situation is kind of complicated (I think). I changed jobs in 2021, so I have two W2s. For my latest job, I've been working remotely from California while my office is in Columbus, OH. So, I was double-taxed for both states in addition to Columbus charging a city tax. 

My understanding is that I'm supposed to take care of Ohio tax first and then use the information for California tax to get the tax credit. Is that correct? 

Also, I'm married. My wife works in California, the state we live in. Would it be still possible to file with "married filed jointly" status in my situation when filing federal and state taxes? 

I appreciate any help. 

[RobertB4444 · Accepted solution]

You will file federally as married filing joint.

Then prepare a married filing joint Ohio non-resident return and point out that the only income that was taxable to Ohio is yours from that W2. 

Once you have all of that entered then you will do your resident return in California - also married filing joint.

California will give you credit for 'taxes paid to other states' and you'll be all set.

[peyman_np]

Thanks for the help.

Am I allowed to add two W2s for myself? I'm having a hard time finding how I should do that. 

[peyman_np]

I was able to finish everything up. Thanks for your help. 

[Hal_Al]

Did you also figure out what to do about the Columbus city income tax withholding?

[peyman_np]

I was able to do that too. 

I have one final question. Should all the tax I paid for Ohio state (including Columbus city tax) be given back to me as a credit on my California tax return or only a portion of it? 

Right now, it's less than what originally was withheld. 

[Hal_Al]

Q. Should all the tax I paid for Ohio state be given back to me as a credit on my California tax return?

A.  Simple answer yes.  It could be very slightly less (I'm not familiar with CA actual calculation).

Q. Should all the tax I paid for Columbus city tax  be given back to me as a credit on my California tax?

A.  No.  While I'm not specifically familiar with CA policy on credits for local taxes paid in another state (some states do, some don't), the question is academic, in your case.  The city of Columbus (not the state of Ohio) should give you a full refund. So, you will not have paid any net city tax.  You cannot do a Columbus return in TurboTax.  Contact the city for the correct refund form.  https://www.columbus.gov/IncomeTaxDivision/  you may have to contact them by phone to explain your situation.

You should ask your employer to stop withholding City tax.

[peyman_np]

Thanks for the info and the heads up about City tax. I'll follow up on this and post my findings here.

[peyman_np]

I want to write this here for anyone who will be having a similar issue in the future. 

For starters, I'm not able to get a tax credit for another city (Columbus in this case) in my CA tax return.  California just does not do that. The other state (in this case OH) is ok and the "other state tax credit" can be claimed when filing the CA tax form. 

For the city, I need to file form IR-25 directly to the city of Columbus (the website mentioned above is their website) and ask for a refund. Since I've not physically lived there during 2021, I will get a full refund for the amount that was paid out of my income. 

Hope it helps.