OH State Question

[Burke]

Does a locality return have to be filed (Findlay) if the tax is $20, and that is exactly what was withheld on the W-2? No refund, no amt due. Thanks.

[jimmcg]

Does a locality return have to be filed (Findlay) if the tax is $20, and that is exactly what was withheld on the W-2? No refund, no amt due. Thanks.

In Ohio municipality returns that I am familiar with do not have to be filed if ALL taxable income is subject to withholding.........There are many municipalities, for this one suggest you check their website or contact them.

[AJsTax]

Was the residence in Findlay?

That is usually the determination to file or not.
If no, was only work city, then no.
if was residence city, then yes. only a couple that do not require filing in Ohio. and every one has their own rules.

[ToledoEd]

Most Ohio cities that have Income Tax, have mandatory filing, meaning that if you live in Findlay, you need to file a city income tax return, even if it is a zero balance due.

On the Ohio Department of Taxation web site you can select Get a tax form, and then select municipal forms and it will take you to the cities website. In Findlays case you have to select the Income Tax Department

[Burke]

Thanks. I have the state and local tax returns in my software. I completed it and that is how I know the tax is $20 -- the exact amt withheld. Just wanted to know if filing is required. This is a part-year, so OH income is all that was taxed. They are residents of Findlay since 12/5/10.

[Koss]

Resident or Nonresident?

Residents of Findlay must file a tax return, even if no tax is due. This rule applies to full-year residents and part-year residents.

If your client only worked in Findlay, and the tax withheld is the correct amount, then he is not required to file.

Even if your client's street address says Findlay, you should NOT assume that your client's house is inside the city limits. The mailing address may well be Findlay even if the physical location of the home is outside the city limits. The filing requirement applies to a taxpayer who lives inside the city; it does not apply to someone who only works inside the city.

You may even want to verify whether your client's workplace is physically inside Findlay. If the employer is withholding Findlay tax, then that should mean that either your client lives in Findlay, or the workplace is in Findlay, or both. But small employers often screw this up. It is possible that your client neither works nor lives in Findlay, but the employer began withholding Findlay tax because your client reported a Findlay mailing address.

Unlikely, but possible. I've seen it all. I practice in Columbus, Ohio, just a couple hours south of Findlay.

You can check the taxation of a specific address on the Ohio Department of Taxation website:

https://thefinder.tax.ohio.gov/StreamlineSalesTaxWeb/AddressLookup/LookupByAddress.aspx?taxType=taxsummary

The instructions for Findlay tax returns are here:

http://www.ci.findlay.oh.us/uploads/File/CityIncomeTax/FORMS/2010%20Findlay%20Filing%20Instructions.pdf

Ohio taxpayers, based on the individual circumstances, may be subject to taxation by the workplace municipality, or the residence municipality, or both. It's a mess. In most cases, if the city where they work has a tax, the employer must withhold it, the amount is always correct, and they are not required to file a return. For the residence municipality, filing is sometimes required, and sometimes it is not, depending on the city.

Findlay requires residents to file a return--even if no tax is due.

But I can't stress enough that just because someone has a Findlay street address and ZIP code does not mean that the building is within the city limits. I don't mean to exaggerate the issue, but sometimes even the client is clueless. If your client just moved to Ohio from Oklahoma or something, they may tell you that they just bought a house in Findlay, Ohio. They may not realize that they are not in the city limits, and they may not understand the impact of this fact.

BMK

[Burke]

Thanks for the elaborate explanation. I am pretty sure he both works and lives within Findlay town limits -- business on Main St, house only 2 blocks away (in center of town.) However, they were just renting. Moving to new home on 4/1/11 a few miles away, so I will need to investigate that further for this year. PS: Here is another wrinkle. Spouse is starting own business, and may be working in locations all over the place, including other cities. So what does she do?