In general, Ohio residents who live within a taxing school district during any portion of the year are subject to Ohio's school district income tax. An individual must file the Ohio School District Income Tax Return (Form SD 100) if all of the following are true:
- They lived in a school district with an income tax for any portion of the tax year;
- They received income while living in the district; and,
- They have a school district income tax liability based on that income.
Form SD 100 must be filed for each school district that an individual lived in and had tax liability. Tax is only calculated on income received while the individual was a resident of a district. Because an individual may have a school district income tax liability even if they aren't required to file an Ohio IT 1040 for the tax year, the Ohio Department of Taxation recommends that individuals who received income and lived in a taxing school district file Form SD 100, even if they have no tax liability, to avoid delinquency billings for non-filing. It may be that school district tax was withheld on a W-2 for a different district than where the individual lived. In that case, you will need to file Form SD 100 for that district to get the withholdings refunded. If you don't know an individual's school district, you can find out at the Ohio Department of Taxation website here. To learn more about distinguishing between municipal tax and school district tax on a W-2, see this information from OH DOT here. For a broad overview of the tax, see OH DOT's "Guide to Ohio's School District Income Tax" here.
Creating an Ohio School District Income Tax Return
To create an Ohio School District Income Tax Return (Form SD 100), from the Main Menu of the Ohio return select 7. School District Income Tax. Click New, select the county the individual was a resident of at the end of the year, and click OK.
Next, select the school district they resided in and click OK. In the School District Tax Withheld Adjustment Menu, the first line, Calculated Amount, will show the amount of school district tax pulled from the W-2(s) entered in the Federal return. The amount entered on the W-2 will pull to this menu correctly if it is entered on the line below the municipality withholding and is identified by the correct 4-digit school district code. If the amount doesn't pull into the return, you can fix the school district information in the W-2 so that it does pull in correctly, or you can enter the amount withheld on 2. Adjustment (+/-).
When you are finished with the menu, press Enter or click 0. Exit. (Note: Sometimes Ohio School District Tax withholding is listed in Box 14 of the W-2. If you don't see it in the state section of the W-2 (Boxes 15 and higher), check Box 14 for "SD xxxx" and an amount, where xxxx is the 4-digit school district code.)
1. Taxpayer School District Residency
There are three residency choices:
- Resident: A resident is an individual who for a full year is both a resident of the State of Ohio and is also domiciled and/or lives in and makes a permanent place of abode in the district.
- Part-year Resident: A part-year resident fits the definition of Resident except for part of the year rather than the full year.
- Nonresident: A nonresident was not a resident of a district for any part of the year. Generally, a nonresident return is filed to recover school district tax withheld in error.
2. School District Number
If the school district was entered incorrectly, you can correct it here without having to delete the return and start over.
3. School District Taxable Income
This section shows how the school district taxable income was calculated based on the amounts pulled from the Ohio Form IT 1040. Each school district that levies a tax does so based on one of the following two methods:
- The Traditional tax base uses the Ohio income tax base (Ohio IT 1040, line 5), plus any business income deduction claimed on Ohio Schedule A, to calculate the school district income tax base. Traditional filers will complete Schedule A on Form SD 100.
- The Earned Income tax base does not use a specific line from the federal or Ohio tax return. Instead, it is based on the taxpayer’s “earned income” and is calculated on Schedule B on the Form SD 100.
The menu choices under this menu will vary depending on which tax base the county uses.
- For the Traditional tax base, it provides a place to enter an adjustment to subtract income included in the school district income that was earned while a nonresident.
- For the Earned Income tax base, it provides places to enter or adjust wages and self-employment income (sole proprietorships and partnerships) earned while a resident of the district and included in Ohio AGI, as well as enter any federal conformity adjustments. For more information on federal conformity, see here.
8. Interest Penalty
Interest penalty may be due if the difference between the tax liability and tax withholdings during the year is greater than $500. Select this menu item to prepare Form IT/SD 2210, Interest Penalty on Underpayment of Ohio Individual Income, School District Income and Pass-Through Entity Tax.
10. Total Payments
Select this menu to adjust W-2 withholdings and enter estimated payments, payments made directly on Form SD-40P, and any prior year carryover.
12. Interest on Late-Paid Amount
Select this menu to enter the total interest and penalty due to late filing or late payment of tax, calculated as follows:
- Interest is due from the filing due date to the date the tax liability is paid.
- A failure-to-file penalty, the greater of $50 per month up to a maximum of $500, or 5% per month up to a maximum of 50% of the tax, may be charged for failure to file the return by the due date.
- A failure-to-pay penalty of double the applicable interest may be charged if the tax is not paid by the original due date.
15. Current E-File Selection
Select this menu to enter bank information for either the direct debit or refund, or indicate that the payment or refund should be made by check.
16. 2020 Estimates
Select this menu to prepare and print Form SD 100ES, School District Estimated Income Tax vouchers for each quarter of the tax year.
17. Amended Return
Select this menu to mark the return as amended and also to indicate the reasons and explanation for the amendment for Form SD RE.
18. Supporting Statements
If any additional information needs to be communicated with the return, enter it here.
How school district info should look on a W-2
The Finder: School District info search tool
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