OH Business Tax

[BrotherRick]

My brother is a resident of Washington and I am a resident of OH.  We are general partners in an OH based LLC dealing in rental property.  In 2022, we made a small income of $1600.  Since we never showed an income prviously, I downloaded the OH TurboTax Business Edition to see if we needed to file any documents with the state. TurboTax printed two tax Instructions, one for mailiing form IT 4078 and another to mail form IT 1140. Both instructions listed a few forms to include, but they both list the same PO Box in Columbus along with note to include a check for $20. 

MY understanding is that our LLC income is reported on a K-1 and passed through to our personal taxes.  I can see why TurboTax would charge me $50 to download the OH tax forms, but why is it stating that we owe $20?  Do we need to file OH taxes at all?  If we need to file, can I put everything in one envelop for the statte?

[MaryK4]

Ohio forms 4078 or 1140 is used for Pass-Through Entities (PTE).  A PTE must file an Ohio return to report and pay tax on behalf of its nonresident individual, trust, and PTE investors.  Since your brother is a Washington resident, the $20 is like a pre-collection of tax that he would claim on his individual return.  

[BrotherRick]

Thanks for clarifying the 4708 for my brother.  I will only include him on that form. 

OH's instructions are not clear to me.  They say you can file the 1140, the 4708 or both.  SInce I'm only including my brother on the 4708,  do I need to file the 1140 for me as well?

THank you very much!

[DianeW777 · Accepted solution]

No.  The IT 4708 is a composite income tax return a Pass Through Entity (PTE) elects to file on behalf of its qualifying investors. It is filed in lieu of the IT 1140 (the PTE withholding return). Unlike the IT 1140, a PTE can use the IT 4708 to claim credits or payments made on its behalf by other PTEs.

• OH PTE Composite Instructions