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ProWeb: Ohio Regional Income Tax Return (RITA)

RITA

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 Sections A and B 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. This includes income typically reported on Schedules C, E, and F, along with certain other miscellaneous income.
  • 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 a nonresident RITA taxing 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 ProWeb, though the program includes specific places at which their results can be entered. All but Worksheet 1 are included in the 6-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.

There are some additional worksheets you may have to create from scratch if 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.

If you're not familiar with the RITA return, read its instructions and have them at hand while working on it.

Note: The RITA return cannot be e-filed in TaxSlayer ProWeb. It will not piggyback on the e-filed Ohio tax return.

Creating the RITA return

In order to create the RITA return, you need to first create the federal return and then the Ohio return. Once the Ohio return has been started, you will see a Localities link on the Ohio state line in the State Return menu. Click Localities, then OH RITA (Form 37). Since this form draws from the Ohio return, don't start it until you're sure the Ohio return is substantially complete.

Individual Declaration Of Exemption

If the taxpayer is exempt from municipal tax, select this line to complete the RITA Declaration of Exemption. If filing the Ohio tax return MFJ, select either Taxpayer or Spouse to indicate whose name prints first on the declaration.

There are seven reasons a taxpayer may be exempt from filing Form 37. If any of the following apply, select the appropriate reason:

  • Member of the U.S. Armed Forces or the National Guard and received a W-2 but no other taxable income for the year. (This does not apply to civilians employed by the military.)
  • Retired for the entire year and didn't receive W-2 income, self-employment income, consulting income, rental income, farm income, or gambling winnings.
  • Left a RITA municipality before January 1.

Heading Information

Select your residency status - Select the residency status appropriate for this return:

  • Resident: 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.
  • Nonresident: The taxpayer did not live in a RITA municipality for any part of the tax year.

Do you have an extension? - If a federal extension has been filed, or if Form 32 EST-EXT has been filed, select Yes, otherwise select No.

Note: If a federal extension has been filed, the municipal income tax return is automatically extended and a separate municipal extension (Form 32 EST-EXT) is not needed.

Is this an amended return? - If you are amending a previously filed RITA return, select Yes and enter an explanation, otherwise select No.

May RITA discuss this return with the 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 Income - This section must be completed by residents and part-year residents of a RITA municipality who received a W-2. Nonresidents only need to enter wages earned in the RITA municipality if their employer did not withhold all of the RITA municipality tax due.

For each W-2 enter:

  • The wages from the RITA municipality.
  • The municipality of the physical workplace and the local tax withheld for that workplace.
  • The municipality of the taxpayer's physical residence and the local tax withheld for that municipality.
  • The date range during which the wages were earned.

Note that workplace and resident municipality information can't be assumed from the taxpayer's address on the federal return as well as the address shown on the W-2.

When finished, click Continue. If there is another W-2 to enter, click + Add New to add it.

W-2G Income - This section must be completed by residents and part-year residents of a RITA municipality who received a W-2G.

For each W-2G enter:

  • The winnings from the RITA municipality.
  • The municipality of the physical workplace and the local tax withheld for that workplace.
  • The municipality of the taxpayer's physical residence and the local tax withheld for that municipality.
  • The date won.

Note that workplace and resident municipality information can't be assumed from the taxpayer's address on the federal return as well as the address shown on the W-2G.

When finished, click Continue. If there is another W-2G to enter, click + Add New to add it.

Non W-2 Income - This section is used to complete Schedule J, 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 estate 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 three other municipalities rather than four.)

Included in every menu is a field to enter income labeled Part/SCorp/Trust Income/Loss From Federal Schedule E. If you are completing Schedule P outside of TaxSlayer ProWeb, the amount to enter here is equal to Schedule P Line 26d for the same column. If you're not completing Schedule P, enter the amount of income on federal Schedule E from each partnership, S corporation, or estate or trust.

Tax Rate 

Select the taxpayer's resident municipality from the drop down list.

Total Credits Allowable

Total Tentative Credits - Items for the Credit Rate Worksheet are entered here:

  • Tentative Credits - Select the taxpayer's resident municipality, the amount of wages, and the workplace tax withheld or paid.
    When finished, click Continue. If there is another municipality to enter, click + Add Credit to add it.
  • Amount From Worksheet L, Row 12, Column 7 - If you completed Schedule L to calculate the credit for taxes paid to other municipalities, enter the credit amount here.

Tax Paid By Your Partnership/S Corp to Any RITA Municipality - 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.

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.

Credit Carried Forward From 20xx - If any amount of credit is being carried forward from the prior year, enter it here.

Apply Any Overpayment Amount as a Credit 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.

Would you like to use the first quarter estimate? - Select Yes to have the first quarter estimate calculated, otherwise select No to use the full estimate amount.

Additional Information:

RITA website

The Finder: Ohio Municipality information search tool

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 underlying state resources and publications.