Ohio School District SD100 is not calculating correctly?

[Taxangel]

I called on the Ohio SD100 and was told to contact Ohio.  It was their problem? In an earned income school district, the tax is calculated on Box 1 of the W2 and self-employment earnings.  ProSeries form is calculating it from Modified AGI from the Ohio return.  The error says line 27 should not exceed Modified AGI from the Ohio return.  This is not true.  The form instructions specifically state that line 27 does NOT come from a specific line of the Federal or State return.

I cannot get Intuit to correct the error.  I have an override on line 27 so it will not file any State forms. My only option is to paper file it.  Any suggestions?

[PATAX]

I think someone else posted similar question very recently on this forum.. Do a check and you should be able to find it.

[Jim-from-Ohio]

here is what my contact at Intuit wrote back when I forwarded your question to him:

ProSeries is correct in the warning.  Ohio has a specific business rule for scenarios Ohio DOT will reject an efiled filed return.

This is the business rule:

Rule Number: OH-SD100-047

Error Category: Incorrect Data

Error Message: School district taxable income for a Earned Income School District cannot be greater than Ohio modified adjusted gross income. Please correct your return and retransmit

Severity: Reject

Applicable Tax Year: 2020/21

Conditions: SchoolDistrictTaxableIncome must be < or equal OhioAdjustedGrossIncome + BusinessIncomeDeduction 

Ohio Modified Adjusted Gross Income is not on the Government form but we calculate Ohio MAGI on a smart worksheet on the IT-1040

[Taxangel]

Per the State guidelines and form instructions, Intuit is incorrect.  Line 27 has nothing to do with any other line item on the Federal or State returns.  It is based on Box 1 Wages and self-employment income.  I looked back on 2020 and it also was calculating incorrectly.

The problem creates a refund on School District for the taxpayer that will eventually have to be paid back.  This is not the first time Intuit has had SD100 wrong.

[TAXOH]

My line 27 doesn't need overridden.   I type in w2 box 1 wages and self employment earned income amount directly on line 27 and it changes line 1 of the sd100 without any overrides.  

[Taxangel]

I receive an error when I type in the earnings because it is greater than Ohio MAGI.

[TAXOH]

Since the overridden amount is correct can you try efiling and turn off error checking when you file and see if the state will accept it?

[Taxangel]

That's a good suggestion.  I'm not sure how to turn it off but I will investigate.  

[TAXOH]

When you go to efile that return select convert and transmit and uncheck where it says error checking.