I'm self-employed, do I need to file Ohio return if I owe nothing?

[rskippon]

I owe $259 in Federal, but I ran the state return numbers through TurboTax and shows I don't owe.  I think up to around $10,000 in Ohio is not subject to state tax.

[Hal_Al · Accepted solution]

I'm afraid the actual answer to your question is somewhat  wishy-washy.

Ohio changed the filing requirements a couple of years ago. 

Official Filing Requirements From the Ohio 2018 Instructions:

You do not have to file an Ohio income tax return if...

-           Your Ohio adjusted gross income (line 3) is less than or equal to $0.

-           The total of your senior citizen credit, lump sum distribution credit and joint filing credit (Ohio Schedule of Credits, lines 4, 5 and 12) is equal to or exceeds your income tax liability (Ohio IT 1040, line 8c) and you are not liable for school district income tax.

-         Your exemption amount (Ohio IT 1040, line 4) is the same as or more than your Ohio adjusted gross income (line 3).

  Note: If your federal adjusted gross income is greater than $13,200, the Department recommends that you file an Ohio IT 1040 or IT 10, even if you do not owe any tax, to avoid delinquency billings.

Unofficially, you do not need to file an Ohio return, If your federal adjusted gross income is less than $13,200 ($15,550 Married filing jointly or $10,850 if you are someone's dependent).

 In the past, they used the (now) unofficial numbers. I'm of the opinion that you do not need to file. TurboTax is of the same opinion. It will instruct you that you do not need to file, but can if you want to.

[Carl]

@Hal_Al I changed your response to the recommended one, since it provides significantly better clarification.

[Carl]

Yes. Otherwise, the state has absolutely no way of knowing that you owe nothing. If you don't, then you *will* end up owing a non-filing or late filing fee to the state.