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Loony2ne
New Member

Filing state taxes

When I was hired in 2022 for a remote job, I lived in Texas. I moved to Oklahoma in 2023 and continued that same job. Oklahoma state tax was taken out at that time. I moved to Ohio in Jan 2024 and continued to work for the same company until June 2024. However, there was no Ohio state tax taken out. The company never changed it, so Oklahoma state tax was taken out from Jan-Jun of 2024.  Also, the company reported all of my wages to the state of Texas for the duration of my employment. (2022-2024).

How do I file to get this corrected or is this something that the employer has to correct?

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1 Reply
Hal_Al
Level 15

Filing state taxes

Q. Is this something that the employer has to (or can) correct?

A. No. 

 

You will need to file a non resident OK tax return to claim a refund of the improperly withheld OK tax.

 

You file an OH resident return to pay OH tax on your whole year income.  Do not try to claim a credit for the OK tax withheld. That is not appropriate for your situation.  You get the refund from OK, instead. 

 

You say "moved to Ohio in Jan 2024". Depending on when in January and how much income you received, while still living in OK, you may need to file OH & OK part year resident returns, instead of resident OH and non-resident OK.

 

Texas does not have an income tax. So, "the company reported all of my wages to the state of Texas" is not relevant.

 

If your employer is not withholding OH tax, you'll need to make quarterly estimated payments. 

 

Welcome to Ohio, in addition to state income tax, Ohio has city income tax. 

You normally only have to file a return in the city you live in. It is not necessary to file one in the city you work in, if different. Your employer will remit withholding to the city you work in, but you do not file a return unless you're claiming a refund or your employer didn't withhold enough ( both highly unusual). The city you live in will allow a credit or partial credit for the withheld tax you paid to the work location city. You may end up owing your resident city nothing, but you are still required to file a return. If you live and work in the same city and your employer did withhold the exact correct amount, you usually still have to file a return. Some cities, like Cincinnati, Columbus, Dayton & Toledo, do not require you to file if the exact amount is withheld. Incidentally, employers are only required to withhold for the work city, although many will voluntarily withhold for the resident city as well. Employees of most big companies, in Ohio, seldom owe any city tax, at tax time (but they still have to file a city return), because the employer holds out exactly the right amount for both work and resident city, taking into account the credit.

 

235 cities and 331 villages in Ohio have an income tax, including Columbus, Toledo, Cincinnati, and Cleveland.  Ohio law requires a flat rate that cannot exceed 1%, unless it is approved by the voters.  Ohio local income tax rates range from 0.5% to 3% in Parma Heights. Cities only taxed earned income (wages or self-employment), although some also include rental income.

There are 2 state wide agencies that help Ohio Cities collect City Income taxes. One is CCA (Central Collection Agency) and the other, larger one, is RITA (Regional Income Tax Agency). There is a pull down list of cities, in Turbo Tax(TT), for both City Tax Forms (CCA) & RITA. TurboTax can only do RITA & CCA cities.  But many  Ohio cities use neither agency. These cities design their own forms and require you to use them.  You can get paper copies from the individual city. Most are available at the city’s web site. Many cities will prepare the tax return for you, but you have to go to city hall in person. Some may have on line filing (try the city web site). Although they won't usually admit it, some will even accept CCA forms. So you could try filling out a CCA form on TurboTax and mailing it to your city. But, I actually find it easier to fill out a city return by hand or at the city, CCA or RITA web site, than to use TT. Things don't happen automatically and you need to know what you’re doing. The actual  city forms are easier to follow than the TT interview.

TT cannot e-file an Ohio City or RITA return. It must be printed and mailed.

Columbus will accept CCA forms. In the Ohio program, you will reach a screen titled "A few things before we wrap up your state taxes" (Other tax Situations at the Summary Screen). Scroll down to Ohio City Taxes. Press Start or revisit. On the next page select City tax forms. You cannot e-file, but will have to print & mail.

 

In addition to city income tax, some Ohio School Districts (SD) also have an income tax (SDIT), that requires the filing of a tax return.  TT can prepare and e-file SDIT returns. Like city tax, it is not automatic, you must initiate it. 

 

FINDER To verify or find out if you live in a school district or city with an income tax enter your address at:

http://www.tax.ohio.gov/Individual/LocalTaxInformation.aspx

 

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