State Taxes with Income from Indiana and Ohio?
I earned around 4000 dollars working in Ohio, then I went to school in Indiana. At school I earned about 100 dollars as a note taker. I'm pretty sure I don't pay Ohio taxes on the money I earned in Indiana, but my Ohio tax form just asks for my federal adjusted gross income and has no place to account for income earned in a different state. How do I resolve this?
Public Comments
- There are rules on reporting the adjusted gross income when you have income from several states. Typically, you take the percentage of the total federal figure that coincides with the state's earned income and use that as your adjusted gross figure. The state filing instructions should have a special provision regarding that computation. For example, say you have a federal adjusted gross income amount of 50,000. Also, let's say you earned 60 percent of your total income for the year in Ohio...the federal adjusted gross income you report for Ohio state tax calculations would be 30,000 and not the full 50,000. However, this is only how the system works, the actual entering of the information will be more complex. First thing would be to download the instructions. For Ohio (where I live) look at the first link below. Scroll down to page 25 (of document, not PDF) and read the section on part year resident. For complete instruction, they have a form IT2023 you'll possibly need to include. That is located on the second link below. familiarize yourself with all of this and Indiana should be easier. I had to do this last year for Illinois and Ohio and I will again have to do it this year. It is not simple but the links I provided should help. The adjustments to your 1040 will be calculated on lines 64-66. Also know that you can not use the 1040 EZ or e filing I believe with this method. You'll have to do the old fashioned way with a stamp and envelope. For the amounts you are mentioning though, this is all a lot of work. I wonder if it would be easier to pick up taxcut state and do it that way. I am sure there is a provision in the program to help do this type of thing and the program only costs like $20.
