Why has the Ohio nonresident credit not been fixed?
When preparing a return for Ohio, the program picks up the nonresident ky withholding as a credit for tax paid to other states. rather than the actual tax of zero when it is refunded on a kentucky nonresident return. An override to the correct tax of zero makes the ohio return not e-fileable. When multiplied by the number of returns filed incorrectly that would be a huge revenue loss to Ohio. I saw this was incorrectly filed in this office last year when the preparer let the return default to proseries treatment.
FIX: enter OH in the nonresident checkbox on the OH return even though they are a resident. A worksheet pops up to zero out the refunded tax.