Ohio Nonresident Status Offers Tax-Savings– May 20, 2014

If you are an individual who has changed your residency from Ohio to another state or country, filing Form IT-DA, or the Affidavit of Non-Ohio Residency/Domicile (NR Affidavit), by May 30th protects your non-Ohio income from being taxed.

Ohio law says that you may be considered a nonresident of Ohio if:

  • You have no more than 182 contact periods (i.e., one contact period equals two consecutive days with or without an overnight stay) in Ohio during the taxable year
  • You have a residence outside of Ohio during the entire taxable year
  • You file the NR affidavit by May 30 of the succeeding calendar year

Once you meet these qualifications and file the NR Affidavit, as a nonresident, only income earned or received in Ohio will be subject to Ohio income tax. Conversely, Ohio residents will pay Ohio income tax on all income, regardless of its state of origin.

We want to hear from you! We encourage you to share this blog post on social media or contact Rachel Roan at rroan@cohencpa.com or a member of your service team for further discussion.

This communication is for information only, and any action should only be taken after a detailed review of the specific situation and appropriate consultation.

Notwithstanding that these materials do not constitute legal, accounting or other professional advice, as may be required by United States Treasury Regulations and IRS Circular 230, you should be advised that these materials are not intended or written to be used, and cannot be used by you or any other person, for the purpose of avoiding penalties that may be imposed under federal tax laws. No written statement contained in these materials may be used by any person to support the promotion or marketing of or to recommend any federal tax transaction(s) or matter(s) addressed in these materials, and any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor with respect to any such federal tax transaction matter.