Individual FAQs - Specific Filing Questions

No portion of a net operating loss shall offset against wages or W-2 income.

The activity of each municipality (profit or loss) must be reported on Form 37, Schedule J.

Business activities must be separated by location in order to properly allocate any tax due.

In general, yes. Please refer to the definition of "Income" in the RITA Rules and Regulations documents found under your municipality listed at the RITA Municipalities. For residents, also refer to Section 6 of the RITA Rules and Regulations Beginning Tax Year 2016 as listed under each municipality in the RITA Municipalities.

Reporting requirements depend on where you live.

 

For tax years 2017 and forward, if you are a RITA municipality resident, report pass-through income and associated payments earned in any non-resident municipality on Form 37, Schedule P.  If you are a resident of a RITA municipality and have pass-through income earned in that municipality, complete Worksheet R and report that amount on Form 37, Line 7b.  For tax years prior to 2017, report the amount of pass-through income tax paid to a RITA municipality on Form 37, Page 2, Line 7b.

 

If you are not a RITA municipality resident, you do not need to report your pass-through income.

 

Reduce your related W-2 wages by the allowable 2106 business expense and report this reduced amount in Section A, Column 1. Multiply your 2106 expenses by the tax rate of your workplace municipality, reduce your local/city tax withheld (from W-2) and report this calculated amount in Section A, Column 2.

NOTE: For Tax Years 2016 and forward, 2106 Business Expenses are limited to the amount deductible for federal income tax purposes. For Tax Years prior to 2016, visit the RITA Municipalities, click on your municipality and select the Special Notes section that relates to the appropriate tax year.

List each wage and tax withheld, to the respective municipality on separate lines of the Form 37. The grand total of these wages should equal Box 5 - Medicare wages on your W-2.

Local taxes paid to a municipality outside the State of Ohio will receive the same credit allowed by your resident municipality for tax paid to municipalities inside the State of Ohio.

Generally, a county tax is not considered a municipal income tax and most municipalities do not allow credit for county taxes paid. Exceptions to this rule exist. For more information, visit the RITA Municipalities, click on your municipality and select the Special Notes section that relates to the appropriate tax year.

No. School district tax is not municipal income tax.

Generally, a four digit code (such as 2509) and/or the codes SD, LSD, CSD listed in box 20 of your W-2 indicates school district tax and SHOULD NOT be reported on your RITA return.

Shareholder's distributive shares that do not represent wages are generally not taxable and should not be reported on Form 37.  Exceptions exist.  Refer to the S-Corp. Owner Residence Tax Treatment Summary for a complete list.