Live in Minerva Park OH, I work in Dublin and husband works in Columbus. Part of 16 he received a stipend T32. Are there allowances and is the grant income?

[debbieannhelms]

We live in Minerva Park Ohio (RITA tax at 2.0%)

I work in Dublin Ohio (2.0%)

Husband works at OSU in Columbus Ohio (2.5%)

He received a stipend ( National Research Service Award - T32) for part of 2016, it is listed as not tax deductible, do we need to declare it as income?

As we are paying income tax in three locations are there any allowances for these locations? so we don't end up paying 6.5% tax. 

[Hal_Al · Accepted solution]

 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). Although most residence cities allow a credit or partial credit for the withheld tax you paid to the work location city, Minerva park is not one of them. You will pay another 2%. It's not 6.5% total though. Only your salary is subject to Dublin tax and only his salary is subject to Columbus tax.

The stipend/grant is income, unless the money was used to pay tuition. If you get a 1099-Misc for the grant, enter it at the 1099-Misc screen. If not, enter In TurboTax (TT), at:

- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

-         “I’ll choose what I work on” Button

Scroll down to:

-Less Common Income

      -Click "Visit All". You'll eventually reach a screen to enter the scholarship amount.

If the stipend is included on his W-2 or in box 7 of a 1099-Misc, it is considered earned income and will be subject to Columbus & Minerva Park tax as well. If in box 7, of a 1099-Misc, it is considered self employment and subject to self employment tax (social security & medicare- FICA)