Trying to determine if we need to make any estimated payments for our new state of Ohio for 2022. We moved at the end of September. All of our income is retirement or investment income. Nothing has been withheld for Ohio taxes. We have prepaid a portion of our PA tax liability (on our investments), based on the original assumption that we would be full-year residents, so we’re good for PA. We’re expecting total taxable income of around $66k for the year. About $53k of that was earned/distributed/paid while PA residents and $13k after we became Ohio residents. Ohio has a progressive tax structure and taxes retirement income, which PA does not, and I’m not entirely confident that I understand how that all works for partial year residents. I’ll call the taxpayer assist line for Ohio this coming week, but wanted to get my thoughts organized before I’m on the phone with someone. If I understand the basic concept, I figure the tax as if we were full-year residents and take a credit for the portion of the income that was earned in PA. When I do the exercise with approx numbers using the forms available (and skipping a lot of steps that probably mostly don’t apply), I get a tax of around $350 for Ohio, which is under the $500 which would cause us to pay a penalty, so I think we’re okay, or to play it safe, I can send an estimated payment of $300 or so by the middle of January.
Sanity check: Even rougher quick way of figuring: OH effective tax rate seems to be in the ballpark of 2.5% for our income level.
.025 x 66000 = $1650. We lived in OH about 1/4 of the year. so $1650/4 = $413.
Anyone see where I screwed up bad enough to make a difference?