Discussion:Ohio City's taxes
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| Revision as of 12:46, 10 April 2009 Foolmeonce (Talk | contribs) (Try this for sta) ← Previous diff |
Revision as of 01:55, 11 April 2009 Jake (Talk | contribs) (As a general rul) Next diff → |
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| + | {{ForumReplyPost|UserID=Jake|Date=11 April 2009|Text=As a general rule where the employer withholds taxes for the city of employment the non-resident taxpayer has no obligation to file a return for that city. | ||
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| + | Most cities require their residents to file a city income tax return (Columbus is an exception). Most cities give 100% credit for taxes paid on income earned and taxed at an equal or higher rate in the city of employment. However, some cites only give a partial credit so income tax is due to the resident city on income earned in another city. A phone call to the resident city income tax dept. is probably the easiest way to find out the details. Many cities will figure the tax due if the resident just stops by with his/her w-2's. Cities in Ohio generally also tax rental income and certain other sources of income. Oil and gas royalties are one example. Executor fees another. | ||
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Revision as of 01:55, 11 April 2009
Discussion Forum Index --> Basic Tax Questions --> Ohio City's taxes
Discussion Forum Index --> Tax Questions --> Ohio City's taxes
| 10 April 2009 | |
| Good Day all,
I have a long-time client that recently moved to Ohio, bad luck for me, he still wants me to do his taxes. I am confused about how Ohio citie's tax system works, and there seems to be little help in the instructions. Taxpayer works in the city of Cincinnati, spouse works in the city of Norwood and they live in Batavia. My question is if they pay taxes on the Cincinnati and Norwood income to those cities can they take a credit in their resident state or do all the cities get to tax the income? Appreciate your help and have a great "last streach" to your 2008/9 tax season! | |
Foolmeonce (talk|edits) said: | 10 April 2009 |
| Try this for starters:
http://tax.ohio.gov/online_services/thefinder.stm and this Local taxes in OH very confusing, and vary from place to place. My former NY client moved 3 times in 5 years out there. Good news is the county and or city treasurers office or other tax offices were extremely helpful, even when it became clear my clent did not actually live in their jurisdiction. A couple of tips - Post office address may not relate to actual taxing jurisdiction, and client may not be aware of it. Each time I have called they did an address search down to street name & number just to figure out what tax jurisdication client lived in. Generally, if the rate of tax is higher where they work as compared to where they live, there will be no net tax at home on their wages. On the other hand if higher at home than at work, they would have to file and pay, and may be subject to estiamted taxes for next year. Interest & dividends may be different story. Some locations require a filing even if it results in no tax liability at home, other don't want a return filed. Real estate taxes are paid in arrears - ie payment in 2008 is really a payment for 2007 liability (at least where my client lives). So when my client bought and paid taxes in 2008, it was payment of a credit he received at closing on HUD-1 for former owners liability - so my client ended up with no deduction on Schedule A. Mike | |
| 11 April 2009 | |
| As a general rule where the employer withholds taxes for the city of employment the non-resident taxpayer has no obligation to file a return for that city.
Most cities require their residents to file a city income tax return (Columbus is an exception). Most cities give 100% credit for taxes paid on income earned and taxed at an equal or higher rate in the city of employment. However, some cites only give a partial credit so income tax is due to the resident city on income earned in another city. A phone call to the resident city income tax dept. is probably the easiest way to find out the details. Many cities will figure the tax due if the resident just stops by with his/her w-2's. Cities in Ohio generally also tax rental income and certain other sources of income. Oil and gas royalties are one example. Executor fees another. | |
