Ohio tax preparers .......

[LCP]

I'm in upper Michigan but starting to do more and more Ohio returns for Ohio residents.

Couple of questions ......

1. Quite a few of the 2007 returns did not include a retirement income credit although it seems to me that they should have. It appears to me that all company pension or retirment plans qualify. Yes? How about IRA's?

2. It also appears to me that local returns are rarely filed except in the case of residents of a taxing locality. Otherwise the withholding covers the non-resident locality's tax.

Thanks for the help.

[AJsTax]

Ohio tax returns

to qualify for the retirement income credit you must meet three conditions:
1. You received retirement benefits, annuities or distributions that were made from a pension , retirement or profit sharing plan.
2. You receive this income because you have retired.
3. this income is included in your Ohio adjusted gross income on line 3. Social security and rail road retirements required to be shown on line 40 and military retirement income required to be shown on line 45g do NOT qualify for the credit.

Ohio citites:
If you only work in the city and the taxes are held from your w-2 income there is no filing requirement. If you live in a city you must file with a couple exceptions. If all income is unearned and retirement income you can request and receive and exception to filing. And Columbus (there may be more) says that if enough is held from your income and the employer reports and pays it, and the work city was also Columbus, resident need not file.
Every city has different rules to a point. And the software programs are not great at it. Too many differences.
Then you throw in the few school districts that have income taxes. That is much more prevelant on the west side of the state for some reason.

[LCP]

Thanks! Here's an example ....

Dayton resident works in Centreville where taxes were withheld.

No need to file in Centreville and no credit available in Dayton, correct? No liability or filing requirement in Dayton either, correct?

[AJsTax]

Must file Dayton

The taxpayer must file Dayton if he is a resident. Centerville is a 1.75% city and DAyton is 2.25% so they will owe the 1/2% difference.
Will not file Centerville since that was work only city.
Dayton forms @ www.cityofdayton.org
quick link to nearly all cities in ohio

http://www.tax.ohio.gov/divisions/municipalities/index.stm