OHIO retired nonresident question

[schirallicpa]

My client has a 1099R from State Teachers Retirement Pension Fund of Ohio.  He's lived in NY for since 2016.  He insists that the OH retirement is taxable in OH.  (about 52000).  And has filed an OH non-resident return for last few years.  I'm getting really confused looking at the OH IT NRC.  Theres no way to apportion the retirement on Schedule 1 of that form.  He has filled on the part year resident portion of the form in the past and I don't think that was correct. To me it doesn't seem like I need to file a non-resident return.  

But it is 714 in the evening......

 

[Lion EA]

The feds solved the issue some years back by legislating that pensions are taxed where the taxpayer resides only. Someone will know the ruling off the top of their head and will cite it for you to convince your client.

[Lion EA]

State Taxation of Pension Income

Act of January 10, 1996, P.L. 104-95, 109 Stat. 979 (H.R. 394)

Be it enacted  ***

SECTION 1. Limitation on State Income Taxation of Certain Pension Income.

(a) In General.—Chapter 4 of title 4, United States Code, is amended by adding at the end the following:

“ Sec. 114. Limitation on State income taxation of certain pension income

“(a) No State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State (as determined under the laws of such State).

[schirallicpa]

Thank you.   I just couldn't find any reason this guy was doing this but I was hoping it wasn't an error in previous years.  

 

[Lion EA]

He probably filled out the PY return/schedule the year he moved, which was correct for that year; then, he continued that method every year since. I've seen taxpayers go to a pro when something changes, and then keep copying what the pro did on their own until the next time something changes!