Ohio Personal Income Tax

Refund Opportunities for Nonresidents of Ohio for Ohio Income Tax on Capital Gain from the Sale of Pass-Through Entity.

Under R.C. 5747.212, Ohio personal income tax is imposed on capital gains realized by out-of-state investors who hold a 20% or greater interest in a pass-through entity or closely held C-corporation doing business in Ohio. Per the statute, the nonresident investor’s gain is apportioned to Ohio according to the three-year average of the entity’s Ohio... Read More

Third Annual Northeast Ohio State and Local Tax Conference Provides Invaluable Updates on the Current State of Ohio and Multistate Taxes

The third annual Northeast Ohio State and Local Tax Conference was held on November 12, 2015 in Independence, Ohio. Matt Chafin, Chief Legal Counsel for the Ohio Department of Taxation, led off the Conference with an Ohio Tax Update, providing valuable insight to the Department of Taxation’s posture and recent initiatives. Chafin is the highest-ranking... Read More

Are you sure you’re an Ohio non-resident? Bright-line residency effectively muted: Ohio Supreme Court rules taxpayers must satisfy the burdensome common-law domicile test for Ohio income tax even when residency affidavit filed.

The Ohio Supreme Court delivered a significant blow to individuals claiming nonresident status for Ohio personal income tax under the bright-line residency statute. Cunningham v. Testa, 2015-Ohio-2744. The Ohio statute provides that an individual is irrebuttably presumed to be a nonresident if the individual satisfies three requirements: (1) maintains an abode outside Ohio for the... Read More

Municipal Income Tax – SERP Constitutes Exempt Pension Income

Municipalities are given the power to tax by the Ohio Constitution – commonly referred to as the Home Rule. This power can be, and has been, limited by the Ohio General Assembly under Chapter 718 of the Ohio Revised Code. Additionally, municipalities often limit the income subject to taxation by its own ordinances, with a... Read More

InvestOhio – Personal Income Tax Credit for Investors in Ohio Small Businesses

Added at the last minute, the recently enacted Ohio Budget Bill (Am. Sub. H.B. 153) included a tax credit for individuals against their Ohio personal income taxes for investments in qualifying Ohio small business enterprises. An eligible small business enterprises must have: (1) less than $50 million in total assets or less than $10 in... Read More

Ohio Income Tax Residency: Not So Clear for Athletes/Entertainers with Multiple Homes

It’s no secret athletes and entertainers are attracted to no-income tax states, such as Florida, Texas and Nevada.  Recently, the tax savings offered by these states was highly publicized as a motivating factor for the departure of Northeast Ohio’s brightest star. Avoiding Ohio’s combined state and local income tax rate (up to 9%) offers a... Read More

Snowbirds: Watch Out For Ohio’s “Contact Period” Test!

Ohio has adopted a unique test for determining who is considered an Ohio resident for individual income taxes.  Based upon the number of  “contact periods” an individual has in Ohio during a given year, a presumption is created as to the individual’s residency.  A “contact period” occurs when an individual is in Ohio for any... Read More