Taxed by two different states, question

[leighb]

So, I think there's something wrong with how I did my state taxes. I'm using turbotax an have income in Ohio and Oregon(resident).

When I did my Ohio taxes they asked what income was from Ohio and what was not and I got taxed on just the Ohio portion. But when I did my Oregon taxes, they did not ask me this question and I think I got taxed for my Ohio income on my Oregon taxes. When I reviewed the forms it does look like the two incomes are together on the Oregon form. But I also don't see a line were I can subtract out of state income. Maybe I'm not suppose to.

Any insight?

[Dee18]

If your state of residence is Oregon, they may tax all of your earnings, but give you credit for what you paid in Ohio.  This is what happens with my taxes in two different states.  Using Tax Act, I enter the income for each W2 separately, but all of the income shows up on my state of residence tax return.

[MDM]

See p. 97 in 2016 Publication OR-17, Oregon Individual Income Tax Guide. 

You don't have to pay twice.

[leighb]

P 97 seemed to be about taking a credit for taxes paid to another state. Not adjusting my Oregon income.

[MDM]

P 97 seemed to be about taking a credit for taxes paid to another state. Not adjusting my Oregon income.

The answer is in your original question:

But I also don't see a line were I can subtract out of state income. Maybe I'm not supposed to.

You don't deduct the other state income.  You do get a credit for the tax paid to the other state.

[leighb]

I get it now! Thanks, all is looking good.