OHIO
separate property state

 

Military Income:   Taxable to military members who are domiciles of Ohio when they are stationed in Ohio.  Military pay is not taxable when stationed outside of Ohio.  Only PCS orders qualify as being stationed outside of Ohio; those on unit deployment whose duty station is located in Ohio will have their military pay taxed.

Military Filing Requirement:  Yes, even if no tax is withheld. In order to qualify for the deduction of military pay received while stationed outside Ohio, the taxpayer must file an Ohio individual, and if applicable, school district income tax return.

Military Spouse Residency Relief Act:  Service member in state in compliance with military orders. Spouse in state solely to be with service member. Spouse not a resident of Ohio. Military spouse may file an exemption from withholding, IT MIL-SP form, with their employers, (this form asks spouses to provide a copy of their military ID card as verification of status). Must file by May 31 of current year, Ohio form IT DA, Affidavit of Non-Ohio Residency/Domicile for Taxable Year 20(XX), (available on Web site at tax.ohio.gov).

Forms Used:  IT-1040, residents and nonresidents

Filing Status:  Same as on the federal return.  Separate state returns are NOT permitted for married couples who filed a joint federal return.  If one spouse is not a resident, they must file jointly as nonresidents.  Qualifying widow(er) with dependent children federal status uses the single status on the Ohio return.

Attach Copy of Federal Return:   No

Not Taxed: 

Other State Tax Credit:   Available.  Complete Ohio Schedule C on the back of the IT-1040 form and attach a copy of other state return.

Reciprocity States:   Indiana, Kentucky, West Virginia, Michigan and Pennsylvania.

Miscellaneous:   Lump sum distributions from qualified retirement plans may be given special tax treatment. 

Where to Mail:
IT1040EZ Refund: IT1040EZ Tax Due:
Ohio Department of Taxation
P O Box 182294
Columbus, OH  43218-2294 

Ohio Department of Taxation
P O Box 182850
Columbus, OH  43218-2850

IT1040 Refund: IT1040 Tax Due:
Ohio Department of Taxation
P O Box 2679
Columbus, OH  43218-2679
Ohio Department of Taxation
P O Box 2057
Columbus, OH  43218-2057
Refund Inquiry: 1-800-282-1784 Forms:  1-800-282-1782
General Information1-800-282-1780 Electronic Filing (614) 433-7333
Other Info: Website:  www.state.oh.us/tax/
Military Website:  tax.ohio.gov/divisions/ohio_individual/individual/military_tax_provisions.stm

Taxpayer Services Division
830 Freeway Drive North
Columbus, OH  43229

E-filing Info: Ohio has no e-file signature form.  It is included with the federal 8453.  Retain information for 4 years.
Tax Form Instructions:
Resident Instructions Non-Resident Instructions

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both Ohio residents, lived at their present location all year, and one or both had income.

Main Info Screen.

 

Ohio IT-1040 Form.  A joint resident Ohio income tax return is prepared.  You must enter the Ohio County and the School District Number as shown in the example. 

 

Ohio W2. For electronic filing, Ohio requires an OH W-2 if there is Ohio withholding on the Federal copy of the W-2.Ensure there is a OH W-2 for each Federal W-2 with Ohio state tax withholding.

Ensure there is a OH W-2 for each Federal W-2 with Ohio state tax withholding. Add OH W-2 by clicking on the plus symbol in the Forms tree next to an existing OH W-2.

Ohio IT-1040, Page 3. Enter military income earned outside Ohio on Line 37a.

Ohio SD-100.  A School District Income Tax return may need to be completed.

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of Ohio, while the other member is a resident of a different state.  A Ohio income tax return must be prepared due to the taxpayer or spouse having Ohio earned income.

Main Info Screen.  If the spouse is a domicile (resident) of another state, the parties should file as residents.  For this example, the taxpayer is a resident of Ohio while the spouse is a resident of North Dakota.

 

Ohio IT-1040 Form.   A joint resident Ohio income tax return should be prepared.  You must enter the state of Residence.  You must enter the Ohio County and the School District Number as shown in the example. Ensure the Taxpayer and Spouse are correctly listed as Resident and Non Resident. You will have to override the fields,<CTRL><ENTER>, to designate the non resident spouse, (or taxpayer), as in the example. Enter the nonresident state.

 

Ohio W2. For electronic filing, Ohio requires an OH W-2 if there is Ohio withholding on the Federal copy of the W-2.Ensure there is a OH W-2 for each Federal W-2 with Ohio state tax withholding.

Ensure there is a OH W-2 for each Federal W-2 with Ohio state tax withholding. Add OH W-2 by clicking on the plus symbol in the Forms tree next to an existing OH W-2.

Ohio IT-1040, Page 3. Enter military income earned outside Ohio on Line 37a.

Ohio IT-1040, Page 4.  Enter the non-Ohio income earned by the non-resident spouse on line 63 on Page 4 of the Ohio IT-1040. You will have to override the field, <CTRL><ENTER>, in order to enter the amount.

Ohio SD-100.  A School District Income Tax return may need to be completed.

Review the remainder of the Ohio Form IT-1040 to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a Ohio tax return due to one or both having Ohio earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a Ohio income tax return because the spouse worked in Ohio.

 

Resident/Nonresident Worksheet.  In order to comply with the Military Spouse Residency Relief Act, the nonresident military spouse's wages are set to zero as in the example. Link to a scratch pad from the indicated field.

Using the example, enter the nonresident spouse's wages on the scratch pad. Ensure the wages are entered as a negative number

Ohio Form IT-1040.   A joint non-resident Ohio income tax return should be prepared.  You must enter the state of Residence.  You must enter the Ohio County and the School District Number as shown in the example. 

 

Ohio W2. For electronic filing, Ohio requires an OH W-2 if there is Ohio withholding on the Federal copy of the W-2.Ensure there is a OH W-2 for each Federal W-2 with Ohio state tax withholding.

Ensure there is a OH W-2 for each Federal W-2 with Ohio state tax withholding. Add OH W-2 by clicking on the plus symbol in the Forms tree next to an existing OH W-2.

Ohio OH 1040 Pg 3, Schedule A - Adjustments to Income - Deductions.   To comply with the provisions of the Service Members Civil Relief Act, the military member's non-resident income must be included as a deduction on Schedule A.  You must enter nonresident Active Duty military pay on line 36.

Ohio Schedules A - Adjustments to Income.   You must enter the Active Duty military pay on line 46 to allocate the deduction taken above to the Taxpayer.

Ohio SD-100.  A School District Income Tax return may need to be completed.

Review the remainder of the Ohio Form IT-1040 to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from Ohio during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of Ohio.  The Spouse and taxpayer must file a Ohio tax return due to one or both of them having Ohio earned income and possibly income from another state.

Main Info Screen.  For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from Ohio to North Dakota during the year.  The spouse was a resident of Ohio but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both Ohio and North Dakota and must file a Ohio income tax return because the spouse worked in Ohio.

 

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Ohio Form IT-1040.   A joint part-year resident Ohio income tax return should be prepared.  You must enter the dates of residency.  You must enter the Ohio County and the School District Number as shown in the example. 

 

Ohio W2. For electronic filing, Ohio requires an OH W-2 if there is Ohio withholding on the Federal copy of the W-2.Ensure there is a OH W-2 for each Federal W-2 with Ohio state tax withholding.

Ensure there is a OH W-2 for each Federal W-2 with Ohio state tax withholding. Add OH W-2 by clicking on the plus symbol in the Forms tree next to an existing OH W-2.

Ohio OH 1040 Pg 3, Schedule A - Adjustments to Income - Deductions.   To comply with the provisions of the Service Members Civil Relief Act, the military member's non-resident income must be included as a deduction on Schedule A.  You must enter nonresident Active Duty military pay on line 36.

Ohio Schedules A - Adjustments to Income.   You must enter the Active Duty military pay on line 46 to allocate the deduction taken above to the Taxpayer.

Ohio Form IT-1040, Page 2.  Schedule D is used to subtract out the other-states (Indiana and North Dakota) income. 

Ohio SD-100.  A School District Income Tax return may need to be completed.

Ohio SD-100 - Page 2.  Enter amount of Ohio AGI earned while a nonresident on Line 18.

Review the remainder of the Ohio Form IT-1040 to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of Ohio with Income from Another State  - Taxpayer is single.  The taxpayer must file a Ohio tax return due to him or her having Ohio earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of Ohio.  The taxpayer had a job in North Dakota therefore having North Dakota earned income.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Ohio IT-1040 Form.  A resident Ohio income tax return is prepared.  Ohio taxes residents on income from all sources, even income earned while living in another state (North Dakota as in this example).  You must enter the Ohio County and the School District Number as shown in the example. 

Ohio W2. For electronic filing, Ohio requires an OH W-2 if there is Ohio withholding on the Federal copy of the W-2.Ensure there is a OH W-2 for each Federal W-2 with Ohio state tax withholding.

Ensure there is a OH W-2 for each Federal W-2 with Ohio state tax withholding. Add OH W-2 by clicking on the plus symbol in the Forms tree next to an existing OH W-2.

Ohio Schedule C, Ohio Resident Credit for Income Subject to Tax by Other States.  Ohio Schedule C can be found on Page 4 of the Ohio IT-1040 form and must be prepared to give a credit for taxes paid to another state (North Dakota). You must complete the other states tax return first, then enter the amount of tax from the other states tax return.  Line 59 is the amount of income earned in the other state (North Dakota).  Line 62 is the amount of income tax liability on the (North Dakota) tax return.  Complete the rest of the Schedule C.  A copy of the other state's return must be attached to the Ohio return if not e-filed.

 

Ohio SD-100.  A School District Income Tax return may need to be completed.

Ohio SD-100 - Page 2.  Enter amount of Ohio AGI earned while a nonresident on Line 18.

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended Ohio return must be filed because the taxpayer received new tax information after their Ohio return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box above Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

Ohio IT-1040X - Amended Individual Income Tax.  Add the Ohio IT-1040X Form to the return.  You must check the box to lock in the entries in Column A - As filed, before making any changes to the return.

Ohio SD-100X - Amended School District Income Tax.  Add a SD-100X to the return if the original return included Ohio SD-100 - School District Income Tax.  You must enter the copy number of the School District Income Tax form that is being amended.  Check the box to lock in the entries prior to making any changes to the return.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

Ohio IT-1040X - Amended Individual Income Tax.  Return to the Ohio IT-1040X form to determine if the taxpayer is receiving an additional refund or owes money.  Enter the current date in the Date field.

Ohio IT-1040X - Amended Individual Income Tax, Page 2.  On Page 2 you must enter an explanation for why the Amended Return is being prepared. 

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.