Question Regarding Income Earned In A Different State

[leorise34]

I live in Ohio and earned income in Kentucky. On the question regarding "Summary of Taxes Paid to Other States?" I put the amount that I earned in KY, then I put the money it said I owed in KY on the Ohio return under the question which asks what I paid in tax even though it hasn't technically been paid yet. Is this correct?

[KrisD15]

Yes, the tax paid is for 2020 earnings. Some states don't double tax, so unlike the Federal return, the state wants what you're paying on that tax year's (2020) earnings, not what was paid in that tax year.

[leorise34]

Hi Kris, thanks for the reply. So I was correct to put the amount I owe KY under the question asking how much tax was paid to KY?

[gloriah5200]

I am assuming you are working on the "other state tax credit" in your resident state of OH claiming taxes paid on KY income in KY.

No, you would generally enter the amount of tax liability to the other NR state instead of your balance due to the other state.

The "other state tax credit" is generally asking you for the amount of "tax liability" for the nonresident state (not balance due) and the earnings in that nonresident state for an other state tax credit in your state of residence return comparing it to your total income for the year being claimed in your resident state (even the nonresident income is considered income in your resident state).