Q. Do I really owe RITA money or do I just need to prove that I've already filed my taxes using TurboTax?
A. You are really required to file a RITA tax return, each year, if you live in a city subject to city income tax and a RITA member (Regional Income Tax Agency). Whether you owe money depends on whether your employer withheld city tax (box 19 of your W-2). *
"I realize now that I need to print out and submit my TurboTax return to RITA separately to show that I filed."
The RITA (city) tax return is a separate from the federal and state returns. It cannot be e-filed. It must be printed and mailed.
TurboTax (TT) does not automatically prepare a city (RITA) 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 Ohio City taxes.
Or, later
"Your 2024 Ohio Taxes are ready for us to check"
-Click Other situations
-Scroll down to Ohio City taxes.
TT cannot e-file an Ohio City or RITA return. It must be printed and mailed.
*235 cities and 331 villages in Ohio have an income tax. 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). But, I actually find it easier to fill out a city return by hand or at the city, CCA or RITA web site, than to use TT. Things don't happen automatically and you need to know what you’re doing. The actual city forms are easier to follow than the TT interview.
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). The city you live in will allow a credit or partial credit for the withheld tax you paid to the work location city. You may end up owing your resident city nothing, but you are still required to file a return. If you live and work in the same city and your employer did withhold the exact correct amount, you usually still have to file a return. Some cities, like Cincinnati, Columbus, Dayton & Toledo, do not require you to file if the exact amount is withheld. Incidentally, employers are only required to withhold for the work city, although many will voluntarily withhold for the resident city as well. Employees of most big companies, in Ohio, seldom owe any city tax, at tax time (but they still have to file a city return), because the employer holds out exactly the right amount for both work and resident city, taking into account the credit.
FINDER To verify or 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
