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Ohio state-credit for taxes paid to another state- not filing other state returns- personal return-

RK67
Level 2

Ohio State-IT 1040 - Sch of credits: I am preparing the personal tax returns for a partner - federal and Ohio State. President of Ohio State. Partnership paid approximately $8000 income taxes to states other than Ohio for example California Illinois Delaware Georgia....

On-screen 52.121 I input the state abbreviation+ income taxed by another state + tax owed to another state. For each of the states to which tax was paid.

I have not prepared the non-Ohio State tax returns as we are not going to be filing them because partnership already did the composite filings.

Ohio State is not computing the "Other State Tax Credit". I spent 1.5 hours with Lacerte and helpdesk could not help me. They had access to my screen. What I gather is that if I prepare the other state tax returns in Lacerte, Lacerte will compute this credit.

But how do I claim this credit when we are not going to be preparing those not Ohio state tax returns? income taxes have been paid to non-Ohio State's....

I can't seem to override the manually computed credit on Sch of Credits, page 2. Thanks for your help.

 

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1 Solution

Accepted Solutions
RK67
Level 2
 

Thanks sjrCPA, Your response caused me to look for other posts and the solution was posted by rozieCPA. Thanks so much!

From: rozieCPA

Hi there,

I called Lacerte and after some time they were able to tell me the following - hope this works for you!

Go to screen 52 OSTC

Enter everything like you normally do for the state abbreviation, income taxed by another state, and tax owed to another state.

Then go back into the Income Taxed by another state line (open the detail box). Go to the second line item under the one you entered a number in already.  Enter the IT-BUS business deduction that is on the Ohio form. If it was the max then put $250,000.

Somehow this makes it work. The Resident Credit and the IT RC should calculate and be correct.

 

View solution in original post

4 Comments 4
sjrcpa
Level 15

Someone else had this same issue with OH in the last couple of days. I can't find it now because the search function sucks.


Ex-AllStar
RK67
Level 2

I had a typo: Resident (full year) of Ohio state. Not President of Ohio. Apologies.

0 Cheers
RK67
Level 2

I found that other posted questions: Ohio was not computing this credit for taxes paid to KY. Still no resolution to his questions also.

0 Cheers
RK67
Level 2
 

Thanks sjrCPA, Your response caused me to look for other posts and the solution was posted by rozieCPA. Thanks so much!

From: rozieCPA

Hi there,

I called Lacerte and after some time they were able to tell me the following - hope this works for you!

Go to screen 52 OSTC

Enter everything like you normally do for the state abbreviation, income taxed by another state, and tax owed to another state.

Then go back into the Income Taxed by another state line (open the detail box). Go to the second line item under the one you entered a number in already.  Enter the IT-BUS business deduction that is on the Ohio form. If it was the max then put $250,000.

Somehow this makes it work. The Resident Credit and the IT RC should calculate and be correct.