My employer asked that I not change my address with them when I moved.

[MicahLMcC]

I moved from Tennessee to Ohio in April of 2023 and continued my same job but remotely. We use Gusto and after I had updated my address in it, they changed it back and my employer asked for simplicity sake if I wouldn't mind just leaving it as TN and I can update in January of 2024.

As we get closer and closer to the deadline, I'm beginning to worry that I'm going to get dinged because they didn't update it correctly. They're saying it's fine but Ohio has more taxes than TN so I'm not convinced. I don't have extra money lying around to get dinged for hundreds or thousands of dollars. Any thoughts? Thanks!

[xmasbaby0]

To clarify----are you saying that no Ohio tax has been withheld from your paychecks, even though you have lived in Ohio since sometime in April 2023?    You are going to need to pay Ohio state income tax for the period of time since you began living in Ohio.  And.....if you are not yet aware, there are a LOT of city and local taxes in Ohio depending on just where in Ohio you are living---you will have to pay those, too.

TN  has no state income tax, but Ohio does have a state income tax, for which you will have to pay at tax time.   You will file a part-year Ohio return.

https://ttlc.intuit.com/questions/1901227-how-do-i-file-a-part-year-state-return

https://ttlc.intuit.com/questions/1901560-how-do-i-file-if-i-moved-to-a-different-state-last-year

https://ttlc.intuit.com/questions/2895983-how-do-i-allocate-split-income-for-a-part-year-state-retur...

City Tax Returns

TurboTax only prepares a few city or local tax returns as an extra step in your state return.  For most local tax returns you are on your own.  You may have to ask around amongst your neighbors, etc. to find out if you have a local tax and how to pay it. “Google “ local tax for your area.  Call your city government, etc.  Your only record of paying your local tax will be your own bank/credit card records

https://ttlc.intuit.com/questions/1899325-which-city-tax-returns-can-i-do-in-the-turbotax-state-prog...

[MicahLMcC]

That is correct. They won’t let me update my information in their system to have that automatically charged. 

I don’t know what to do as I’ve been trying to update it since April. 

[xmasbaby0]

For one thing---you could pay estimated tax to Ohio before tax time.   Or....start saving up--because you are gong to owe Ohio and maybe you will owe a local or city tax: 

Use this link to see if you are in a school district that you will owe tax to, a RITA city, or any other locality that you may owe to.  It is a complicated system in Ohio.

https://tax.ohio.gov/help-center/the-finder/the-finder

[xmasbaby0]

 

 

Ohio Tax Guide: What You’ll Pay in 2023

En español | Ohio’s top income tax rate of 3.99 percent puts it in the bottom third of the 50 states. But its property and sales tax rates are on the higher end compared with the rest of the country. The Buckeye State is friendly to those 65 and older, with several tax breaks for seniors and no state tax on inheritances, estates or Social Security.

 

• Income tax: 2.765 percent to 3.99 percent
  Ohio has four tax brackets, ranging from 2.765 percent to 3.99 percent. Residents of many Ohio cities and villages also pay local income tax on top of state tax.  

[MicahLMcC]

How would I go about starting to pay estimated taxes? Sorry, I’m new to this and the numbers mean nothing. 

[TomD8]

All the income you've earned since you became an Ohio resident is taxable by Ohio.

Ohio's law is that you must make quarterly estimated tax payments if you expect your Ohio tax liability to be more than $500.  You can read the details here:

https://tax.ohio.gov/individual/resources/estimated-payments

When you do your 2023 taxes, in the Personal Info section of TT enter your State of Residence as Ohio.  Answer "Yes" to the question about having lived in another state.  Select TN as the other state and enter the date you began living in Ohio.  Answer No to the question about having made money in other states.  This will prompt the program to produce the correct forms.

[Hal_Al]

This is a very common situation.  The employer doesn't want the hassle of withholding tax for a single employee in another state, particularly a state like Ohio, with complex local tax, as well as state tax. 

You need to accept the fact, that you need to make quarterly  estimated payments to the Ohio Dept. of Taxation (ODT), for state income tax.

To 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

If you do, you'll need to make separate quarterly payments to the local taxing authority.  

For a list of all Ohio cities with an income tax go to

https://tax.ohio.gov/business/municipalities/08municipal-income-tax-forms

From there, there is a link to each city’s web site and/or RITA / CCA (agencies that administer city income tax for many Ohio cities).

School District Estimated Payment Vouchers

https://www.taxformfinder.org/forms/2023/2023-ohio-form-sd-100es.pdf

[xmasbaby0]

There should be a way to make payments on the Ohio tax web site.

https://tax.ohio.gov/help-center

@Hal_Al   ????

[TomD8]

@xmasbaby0 --

Pay Online | Department of Taxation (ohio.gov)

[Hal_Al]

Yes, you can pay quarterly state income tax and School District Income Tax (SDIT) on line at  the Ohio Dept. of Taxation (ODT) web site.  ODT administers the SDIT, as well as the state income tax.

ODT does not administer city income tax.  But many cities do allow on line payments, particularly those administered by RITA and CCA.

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).