Any one practice in Ohio???

[Hamacher]

I'm trying to do a return for a client that moved from IA to OH on 5/15/09. I'm having trouble with the city returns. Please let me know if the following is true:

1) A city income tax return is needed for each city the taxpayer works.
2) A school district return (SD 100) is only due for the city that the taxpayer resides.

It also appears that ALL income is taxed to the school district regardless of where it was earned. The taxpayer has income that was earned in IA but it appears that for some reason, they tax it too.

If the tax payer only has W2 earnings are estimates required? I assume the employer will withhold for the city taxes.

Thanks in advance for you help!

[taxcraft]

Ohio

1)The city tax for a W-2 employee is filed for the resident city, usually the work city got all its tax through withholding and does not need a filing..
2)Not all districts have an income tax(like townships), but many incorporated cities do.
3)Two big taxing authorities with many member cities are RITA and CCA. Other cities(not belonging to these two) and having an income tax will have their own forms and tax departments.
4)Not all cities have a school district tax. In my area its usually the more "rural" areas.
5)Usually for full time residents, all their income is taxed to the resident city.
6)For part year residents you must allocate their earnings to the time spent in the different work cities and in the different resident cities because of the different tax rates and credits allowed.
7)If your client worked in Iowa temporarily while living at his Ohio residence, hie residence city would tax his Iowa income.
8)Income earned in Iowa while living in Iowa is ignored for Ohio city tax purposes.
9)Estimated taxes are computed at the end of the form and the first quarter amount is added onto the current years tax due(if any).
10)Work city taxes are ignored for W-2 employees unless they are also self employed or not enough tax was paid to the work city.

There are two main types of tax forms used in Ohio, the RITA type in which the resident city gives a tax credit to the work city taxes based upon dollars actually withheld, and the CCA type in which the work city gives credit to the work city taxes based upon the published tax rate percentages of the work city.

Ohio cities generally tax city(not Federal) wages for W-2 employees, net profits for the Schedule C businesses and partnerships and corporations and I believe lottery winnings for individuals.

I once did a work city spreadsheet for over 300 job site cities for an incorporated roofing company because preparing individual returns was out of the question. Most of the cities accepted the spreadsheet instead of a specific return.

Did I cover all you asked?



I can't help you with more info about the school tax because I never did one.

[taxcraft]

Ohio

1)The city tax for a W-2 employee is filed for the resident city, usually the work city got all its tax through withholding and does not need a filing..
2)Not all districts have an income tax(like townships), but many incorporated cities do.
3)Two big taxing authorities with many member cities are RITA and CCA. Other cities(not belonging to these two) and having an income tax will have their own forms and tax departments.
4)Not all cities have a school district tax. In my area its usually the more "rural" areas.
5)Usually for full time residents, all their income is taxed to the resident city.
6)For part year residents you must allocate their earnings to the time spent in the different work cities and in the different resident cities because of the different tax rates and credits allowed.
7)If your client worked in Iowa temporarily while living at his Ohio residence, hie residence city would tax his Iowa income.
8)Income earned in Iowa while living in Iowa is ignored for Ohio city tax purposes.

Did I cover all you asked?

PS: I can't help you with more info about the school tax because I never did one.

[taxcraft]

Ohio again

Forgot....the estimated Ohio city taxes are incorporated into the bottom of the city tax return.
Your software may compute them automatically and the first quarter is added onto this years tax due for a total tax to be included with the return.
In my area, for each coming quarter, the taxpayer is reminded of the quarterly estimated payment.

[CarolToppCPA]

City taxes in Ohio

Ohio taxpayers do not have to file city returns for every city in which they work, only the city where they live.
For example, my husband works in Springfield and city taxes are withheld from his W-2. We live in West Chester which has no city income tax. We do not file a Springfield city return. Spring field does not require a return from a nonresident and all his Spring field taxes were paid through W-2 withholding.

As for the school district tax:

The Form SD100 has two tax bases (depending on which tax base your school district has chosen): Traditional base or Earned income base. Traditional base uses Line 5 of OH IT 1040. It allows a deduction for income earned while not a resident of the school district on line 2 of the SD 100.
The earned income bases does not not allow this deduction and uses a separate schedule to calculate the SD taxable income.

So you need to check which tax base your school district uses.

[taxcraft]

Ohio once more

You have to file for the work city if you were self-employed there, or not enough tax, or no tax was paid, otherwise just ignore them

I once did a spreadsheet for over 300 job site cities for an incorporated roofing company because of the different tax rates. Most of the cities (not all of them) involved accepted the worksheet in place of a specific return.

[Hamacher]

Follow Up

OK... My tax payer worked in Lima and the employer withheld on her W2. The spouse worked in Jackson Center and his employer withheld on his W2. They live in Wapakoneta. The employer withheld for Schood District tax but not for Wapakoneta city tax. The taxpayer moved from Iowa in May. What returns need to be filed? Is there a School District tax AND a city tax due for Wapakoneta? I also see that the school district return starts with Ohio taxable income which is income from all states. I dont see where you can exclude income from Iowa.

Thanks for all your help!

[tpnl]

I work in Lima

Our office is in Lima. Wapak & Jackson Center are just around the corner.

Lima city income tax is 1.5 %.
Wapak city income tax is 1%
Jackson Center is 1.5%
Wapak school has an income tax on residents that live in the district of 0.75%

Lima and Wapak city each process their own returns. Jackson Center is a RITA. You can find them on the web. Just search "Lima city income tax Ohio" and same for Wapak.

If Lima is withheld correctly they do not require a return, same for Wapak.

You will need to make the adjustment to Wapak school for the income earned while your clients were not residents of Wapak school district. The school district code is #0605.

Also on the Ohio return asks for the county of residence, it is probably Auglaize county for your client.

Lima can be B*tchy if the returns are incorrect or you do not provide the "right" information.
Wapak is easier to work with.
Ohio school district will probably send something to your client to verify residency.

Anything else?

[taxcraft]

Ohio cities

Forget filing income tax for Lima and Jackson Center....they got their income tax through withholding.

My software says Wapakoneta has a 1% resident income tax and give a max of a 1% credit. So you must file an income tax form here. Depending upon the credits and tax rates allowed, it could be that no income tax will be due....but you must go through the return.

I can't help with the school tax. The school tax withheld may have been to help with the residence total bill. But, maybe the other employer could have also withheld school tax if one of the employers thought it was due. Wapakoneta's website is www.wapakoneta.net. School tax info is not mentioned on the website, but you can call the tax department at: 419-738-7342 from 8am to 5pm mon through fri.

[taxcraft]

Ohio cities

Forget filing income tax for Lima and Jackson Center....they got their income tax through withholding.

My software says Wapakoneta has a 1% resident income tax and give a max of a 1% credit. So you must file an income tax form here. Depending upon the credits and tax rates allowed, it could be that no income tax will be due....but you must go through the return.

I can't help with the school tax. The school tax withheld may have been to help with the residence total bill. But, maybe the other employer could have also withheld school tax if one of the employers thought it was due. Wapakoneta's website is www.wapakoneta.net. School tax info is not mentioned on the website, but you can call the tax department at: 419-738-7342 from 8am to 5pm mon through fri.

Good luck.

[tpnl]

Ohio cities

I would not give the advice to not file a retun. I do not know enough about your specific situation to give that advice. But if they are withheld correctly, the cities usually do not require a tax return. However, they can require it even if withheld correctly.


Ohio requires employers to withhold schoold district tax if requested by the employee.

Good Luck.

[Hamacher]

Thanks

Thanks Everyone. That helps a great deal.