Who must file
An Ohio Regional Income Tax Return (Form 37) must be filed by:
- Resident individuals of a RITA Municipality who are 18 years of age and older, even if no tax is due;
- Nonresidents of a RITA Municipality who have earned income from a RITA municipality that is not subject to employer withholding, or if the employer did not fully withhold for the municipality of employment;
- Nonresidents of a RITA Municipality who earned non-wage income within a RITA municipality;
- Nonresidents of a RITA Municipality who conduct business in a RITA municipality, even if no tax is due.
The filer may owe municipal income tax to the municipality where they lived (their "resident" municipality) as well as to the municipality where they worked or conducted business.
Overview
Preparing Form 37 requires completing at a minimum two sections and if needed any of up to three schedules and six worksheets.
- Section A: Lists all W-2 wages and W-2G winnings and the local/city tax withheld while living in a RITA municipality.
- Section B: Calculates the RITA income tax due. All the results from all the other worksheets and schedules ultimately flow here.
- Schedule J: Summary of income/loss not in Section A, allocated to the municipality(s) where earned.
- Schedule K
- Line 34: Calculates tax due on W-2 wages earned in a RITA municipality other than the residence municipality and from which no municipal income tax was withheld by the employer.
- Line 35: Calculates tax due on W-2 wages earned in a non-RITA municipality, from which no municipal income tax was withheld by the employer, but which the taxpayer filed and paid the tax due to the municipality.
- Schedule P (feeds Worksheet L, Row P and Schedule J, Line 26, Column 7): Summary of pass-through income/loss earned in RITA taxing municipalities other than the resident municipality.
- Credit Rate Worksheet: Calculates the credit available, if any, for workplace tax withheld on wages earned outside of the resident municipality.
- Worksheet L (feeds Credit Rate Worksheet and Schedule K, Line 36): For RITA municipality residents and part-year residents only, this worksheet is used if there are gains and/or losses in more than one municipality. The worksheet allocates the gains and losses to compute tax due and calculate potential credit for tax paid to other municipalities.
- Worksheet R (feeds Form 37, Section B, Line 7b): For a RITA municipality resident with pass-through income in their RITA resident municipality, this worksheet calculates the credit for tax paid by the pass-through entity to the resident municipality.
- Worksheet 1 (feeds Section B, Line 20a): Calculates estimated tax for both RITA municipality residents and nonresidents.
- Resident Municipality Loss Carryforward Worksheet: Calculates the allowable prior year loss carryforward.
- Workplace Loss Carryforward Worksheet: Calculates the net loss from prior years that is available to offset current year income. (A NOL carryforward in a workplace municipality can only offset a gain within the same workplace municipality.)
Schedule P, Worksheets L, R, and 1, and the two Loss Carryforward Worksheets are not available in TaxSlayer Pro, though the program includes specific places at which their results can be entered. All but Worksheet 1 are included in the 3-page Form 37. Worksheet 1 is included in the Form 37 Instructions. Both Form 37 and the Instructions can be downloaded from the RITA website here.
Additional worksheets you will have to create from scratch as needed:
- If the taxpayer resided in more than two locations during the year, a schedule is needed listing the additional locations and the effective dates for each.
- If the taxpayer moved between one RITA municipality and another, Schedule J needs to be augmented with a worksheet that allocates the non-wage income to the municipality in which it was earned or received along with the effective dates of the allocation.
- Other Income reported on Schedule J Line 25 needs to be listed in a separate schedule describing the source of the income as well as the municipality to which it applies.
Note: The RITA return cannot be e-filed. It will not piggyback on the e-filed Ohio tax return.
Creating the RITA return
To start Form 37 Ohio Regional Income Tax Return, from the Main Menu of the Ohio state section select:
- Localities
- OH RITA
Individual Declaration Of Exemption
Select this line to file an Individual Declaration of Exemption. If filing the Ohio tax return MFJ, select either Taxpayer or Spouse to indicate whose name prints first on the declaration. Select the appropriate reason(s) for exemption in the menu provided.
Heading Information
Residency Status - Select the residency status appropriate for this situation:
- Full-year: The taxpayer lived in one or more RITA municipalities for all the tax year.
- Part-year: The taxpayer lived in a RITA municipality for part of the tax year.
- Non-resident: The taxpayer did not live in a RITA municipality for any part of the tax year.
Extension - If a federal extension has been filed, or if Form 32-EXT has been filed, change this line from No to Yes.
Note: If a federal extension has been filed, the municipal income tax return is automatically extended and a separate municipal extension (Form 32-EXT) is not needed.
Amended - If you are amending a previously filed RITA return, change this line from No to Yes.
May RITA discuss return with preparer? - Select Yes or No.
Physical Addresses During 20xx - Enter the physical address where the taxpayer resided at the beginning of the year in Physical Address #1. If they moved during the year, enter the next address in Physical Address #2.If the taxpayer lived in more than two locations during the year, attach a separate sheet listing the additional location(s) and effective dates for each. Important points about this section:
- The physical address may or may not be in the same municipality as the mailing address.
- If the taxpayer moved out of a RITA municipality with no intent to return, and the current mailing address is their address of record, enter that address and include with the return supporting documentation with regard to the relocation along with the reason for the change.
Total Taxable Income
W-2 Wages/W-2G Winnings (Section A) - Section A must be completed by residents and part-year residents of a RITA municipality who received a W-2 or W-2G. Nonresidents should also fill out section A for wages earned in the RITA municipality from which their employer did not withhold all of the RITA municipality tax due.
Add each W-2 and/or W-2G:
- Wages/Winnings from RITA municipality.
- The municipality of the physical workplace and the municipality of the taxpayer's physical residence.
- For a W-2, the date range during which the wages were earned.
- For a W-2G, the date of winning.
Note that workplace and resident municipality information can't be assumed from the taxpayer's address on the Federal return as well as the addresses shown on the W-2 or W-2G.
Note: Correct spelling is important to ensure the correct tax rate is used, so to avoid misspelling the municipality name it's best to choose from the list of municipalities when prompted.
Non W-2 Income (Schedule J) - Schedule J is for reporting net income/loss on Federal Schedules C, E, and F as well as many other miscellaneous income items. Additionally, residents of a RITA municipality should report pass-through income from a partnership, S corp, or trust in their RITA resident municipality. (Nonresidents do not report pass-through income here.) Refer to RITA for a list of income that is considered taxable and non-taxable here.
Schedule J contains six columns used to apportion the income as needed between the resident RITA municipality, the total of all non-taxing municipalities, and up to four other municipalities whether RITA or non-RITA. (TaxSlayer ProWeb provides entry points for two other municipalities rather than four.)
Included in the menus for the other three RITA and/or non-RITA municipalities is a menu item to enter income From Federal Schedule E Part/S-Corp/Trust Income(Loss). If you are preparing Schedule P outside of TaxSlayer Pro, the amount here is equal to Schedule P Line 26d for the same column.
Tax Rate
Select the municipality from the drop down list.
Total Credits Allowable
Tax Paid by your Partnership/S Corp to RITA - If the credit for tax paid by a pass-through entity to the resident's RITA municipality was calculated on Worksheet R, enter the amount of the calculated credit here.
Total Tentative Credits - Items for the Credit Rate Worksheet can be entered here, along with the credit for taxes paid to other municipalities as calculated on Schedule L.
Payments
Estimated Payments Made in 20xx - If any estimated payments were made to RITA in the current year, whether by phone, by mail, in person, or at the RITA MyAccount online, enter the total here. Do not include tax withheld from W-2s or W-2Gs.
Apply any Overpayment Amount to be Credited Toward 20xx Estimated Tax - If the return results in an overpayment of RITA tax, the amount can either be refunded or applied to next year's estimated tax. (Overpayments can't be split to both a refund and estimated tax.) To indicated that the overpayment should be applied to the next year's estimated tax, select this line and answer Yes to the question.
20xx Estimated Taxes
Estimated Tax for 20xx - If the taxpayer anticipates owing $200 or more in municipal income tax next year, you must include an estimate of next year's tax liability on this line. RITA suggests using the amount of tax due this year, if any, as an estimate for next year, or you can use Worksheet 1 in the Form 37 instructions to calculate an estimate.
Full or 1/4 20xx Estimated Tax - An estimate entered on the previous line above will also be entered here. To pay 1/4 of that with the return, select Yes.
TaxSlayer ProWeb will calculate the Total Due based on the above entries. If the result is negative, then, of course, nothing is due.
Additional Information:
The Finder: Ohio Municipality information search tool
Disclaimer
While TaxSlayer Pro strives to make the information and links contained on this page as timely and accurate as possible, TaxSlayer Pro makes no promise or guarantee about the timeliness, accuracy or completeness of the contents of this page. The information contained on this page is for general information and is not intended to be tax advice. The user is also encouraged to review the RITA resources and publications, which are both helpful and authoritative.