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I have been an Ohio Resident since October 16, 2017. Shouldn,t I be paying taxes for only 2months and 16 days?

 
3 Replies

I have been an Ohio Resident since October 16, 2017. Shouldn,t I be paying taxes for only 2months and 16 days?

Did you work in Ohio prior to then?
Hal_Al
Level 15

I have been an Ohio Resident since October 16, 2017. Shouldn,t I be paying taxes for only 2months and 16 days?

Yes and you will be. It just appears that you are paying Ohio tax on all your income.

Ohio does a convoluted tax calculation for non-residents/part year residents. It calculates tax on total income, then it calculates a non resident/part year resident credit, which it subtracts from the tax it calculated on the total income. The credit is calculated as your non-Ohio income divided by Total adjusted Income multiplied by the total tax. TurboTax (TT)   does this by allocating your income as either Ohio or non-Ohio. W-2 income will be allocated by the state name abbreviation shown in box 15 of your W-2. TT will ask you, item by item, in the state section, how much of your other income is Ohio or non-Ohio income. Make sure that your non-Ohio wages show the Other state postal abbreviation in box 15 of your W-2 screen, with the other state  amount in box 16.

This system allows Ohio to apply their highest tax rate, based on your total income, while only taxing your Ohio income.

Ohio has a nonresident credit allocation form.. IT NRC

http://www.tax.ohio.gov/portals/0/forms/ohio_individual/individual/2017/PIT_ITNRC.pdf 

I have been an Ohio Resident since October 16, 2017. Shouldn,t I be paying taxes for only 2months and 16 days?

I just spent some time with a representative on the phone.  So glad we found this post!  It would help if TurboTax stated more obviously somewhere that the tax RATE based on total income was being used but that only the OH income was being taxed.  It is/was a little misleading to see a highlighted box at the top of TurboTax that listed my entire year's worth of income instead of just the OH portion.  The OH NRC form is included in the deluxe CD version of TurboTax.  Thus the rep and I were thus able to confirm that the "right," OH-only income was being taxed as opposed to the entire year's worth.
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