Ohio-Local Income Tax

[ssjoeboe9]

I'm filing jointly with my wife, and we live together in Dublin,OH (but our address is of Columbus school district). I work in a city where there is no local tax, so all of my local tax (2.5% for Columbus) goes to Columbus.

However, my wife works in Gahanna where there is a 1.5% local tax. So on her W-2 it shows that she paid local taxes for both Gahanna & Columbus (1.5% and 1% respectively). My understanding is that if either city is higher or lower, the lower one gets the full amount, and the higher one takes the difference. This all seems to be fine, but when "reviewing my return" I get a message that says "SD 100 returns for a non taxing school district are not eligible for E-filing".

Since our School District is Columbus and CSD tax is 0.0%... why is Turbo Tax saying I have to file this form?

[Hal_Al · Accepted solution]

You're mixing up School district (SD) and City Income tax. They are two different types of income taxes. You do not live in a SD with a tax ( neither Columbus CSD-2503 or Dublin CSD-2513 are taxing districts). You should not be filing an SD return (form SD100).  Go back thru the SD interview. You'll reach a screen where you can exclude the SD return you prepared.

Instead, you should be filing a Dublin City return. That can't be done in TurboTax. See http://dublinohiousa.gov/taxation/. Dublin is one of the few cities providing a 100% credit rate for tax paid to other cities (up to the 2% rate).

However, the statement "so all of my local tax (2.5% for Columbus) goes to Columbus"  would seem to indicate that you do work in a city with an income tax (Columbus).  I assume that means your employer shows withholding in box 19 of your W-2 and COL (or some other code for Columbus city, not SD) in box 20

[ssjoeboe9]

Sorry, but I should have clarified that our Municipal Income Tax is Columbus (18000) and we are also CSD. My concern really lies in the fact that turbo tax is thinking it needs to file an SD-100 when I don't.. so it won't E-file my state return. There is no "SD interview". I believe it is being prepared from the info that you provide from Box 20 "Locality Name" of the local taxes on our W2. I'm not sure why TurboTax is trying to prepare this form and I don't know how to exclude (where in turbo tax this is located), before it tries to "review my return" for any errors.

[Hal_Al]

SD 100 is not initiated from box 20 of your W-2. TurboTax (TT) does not automatically prepare a School District return, you must initiate it.
At the screen, in the Ohio program, titled  "A few things before we wrap up your state taxes"
      scroll down to School District taxes.
Or later at the screen  "Your 2014 Ohio Taxes are ready for us to check"
    -Click Other situations
    -Scroll down to School District taxes.

You will reach a screen that gives you the choice to include or exclude the SD return. Click exclude.

[ssjoeboe9]

Thank you so much! I've gotten it all cleared up now!