OHIO Help

[GraceNY]

NYS resident age 22 did an internship in OH from the middle of May to the middle of August (approximately 75 days) in 2013. She lived in a dorm-like setting provided by the company she interned for. Being claimed on parents 2013 return as a dependent which they are entitled to as she was a fulltime student in 2013.

W-2 shows just over $5,000 of wages along with $100 of withholding for OH. Also, local wages of the same $5,000 with local income tax withholding of $125. Box 20 locality name says 01-Columbus.

She got a permanent job with this company in January of 2014 and has moved there. Therefore, the OH address will be shown on her filed return.

I am preparing the 2013 income tax return and am not sure of the following: (1) Non-Resident vs. Part-Year in 2013; (2) Locality tax?? If Non-Resident, what about "Affidavit of Non-Ohio Residency" versus "Ohio Income Tax Notice (IT-10)." Should one of these be filed.

I know states are really cracking down on residency status as all of them vie for tax money and I want to be cautious as to how the return is handled.

Thanks in advance for your assistance.

Grace

[Margaret CPA in OH]

Check Ohio Form IT-1040. Page 4, Schedule D, is for Part-Year Resident Credit which will help calculate what may be due. She gets an exemption even if parents claim her for federal purposes.

Columbus, like many/most Ohio municipalities taxes at a given rate and may give credit if you reside in another nearby municipality depending. Because she lived in Columbus, she was 'fully withheld' and no filing is required nor credit given.

[pikester1967]

Typically what I do is send along a copy of the rental agreement for the specific period. Ohio typically want's documented proof of the residency.