Terry O Posted February 27, 2008 Report Share Posted February 27, 2008 I have a client who lives in Shaker Heights, Oh - -I just prepared the Oh 37 - -can it be possible that they owe an additional $1041 resident taxes on 80K AFTER paying Ohio taxes of 3000, and working municipal taxes of 1600 ?? WOW - - Thank You! Quote Link to comment Share on other sites More sharing options...
rfassett Posted February 27, 2008 Report Share Posted February 27, 2008 Doesn't sound right! What is the tax rate for SH? Did you take the credit paid to other municpalites? Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted February 28, 2008 Report Share Posted February 28, 2008 I have a client who lives in Shaker Heights, Oh - -I just prepared the Oh 37 - -can it be possible that they owe an additional $1041 resident taxes on 80K AFTER paying Ohio taxes of 3000, and working municipal taxes of 1600 ?? WOW - - Thank You! Does not sound right....Sounds like the OH37 is not taking into consideration the $1600 paid in city tax. Shaker Heights tax rate is 1.75%, so if $80,000 income, should only pay $1,400 in city taxes. make sure the amounts from the W-2 (especially local taxes withheld) is flowing everywhere it should on the 37. Quote Link to comment Share on other sites More sharing options...
PaulH Posted February 28, 2008 Report Share Posted February 28, 2008 I have a client who lives in Shaker Heights, Oh - -I just prepared the Oh 37 - -can it be possible that they owe an additional $1041 resident taxes on 80K AFTER paying Ohio taxes of 3000, and working municipal taxes of 1600 ?? WOW - - Thank You! Sounds right to me. Shaker Heights only gives you credit for 50% of up to 1% tax paid to the city where you work (i.e., a maximum of .5% credit). So the lowest residence tax rate is 1.25%, which applies to people working in other cities and paying at least 1% city tax there. It's not a tax-friendly place to live (but it has a good school system). Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted February 28, 2008 Report Share Posted February 28, 2008 Sounds right to me. Shaker Heights only gives you credit for 50% of up to 1% tax paid to the city where you work (i.e., a maximum of .5% credit). So the lowest residence tax rate is 1.25%, which applies to people working in other cities and paying at least 1% city tax there. It's not a tax-friendly place to live (but it has a good school system). Wow...I just assumed they reciprocated up to their rate of 1.75%....that's rough...only reciprocating 50% up to 1%?! Quote Link to comment Share on other sites More sharing options...
Terry O Posted February 28, 2008 Author Report Share Posted February 28, 2008 Yeah - -sadly, I was correct - - client owes a LOT - - but the good news - -he was WELL aware of it. Normally, when I hear " I was talking to the guys at work/the bar" I cringe - - - but this time - -he had gotten the head's up. And they talk about NYS taxes - - -wow Quote Link to comment Share on other sites More sharing options...
bay Posted February 28, 2008 Report Share Posted February 28, 2008 Sounds right to me and the politicians can't figure out why the economy in NorthEast Ohio is in the tank (other than health care). I am in Cuyahoga County that has about 44 different municipalities and all with their different city ordinances in regards to taxes. I truely find completing city income tax returns the most problematic. To make matters worse, these cities have a program with the State of Ohio whereby they (the cities) get a listing of every taxpayer that has filed an Ohio Tax Return. This one eldery client of mine is 90 in the nursing home and gets a letter with a subponea from the local suburb ordering her to a hearing as to why she did not file a city tax return. Of course the client is very scared and you explain to the city tax collectors that your client is "exempt" from city taxes because she is retired and has no "earned" income. It is nothing but a waste of time and tax dollars. I normally am not one to rant and rave but I Hate city tax returns! Quote Link to comment Share on other sites More sharing options...
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