Ohio Income Tax

Legislation introduced to provided that compensation paid by Professional Employer Organizations on behalf of Ohio small businesses would qualify for deduction

Some small business owners became entangled in Ohio income tax audits due to arrangements outsourcing their human resource functions to a professional employer organizations or PEO. The hallmark of a PEO relationship is the co-employment whereby the PEO issues payment, as well as fulfilling other HR functions, but works at the client / employer’s worksite.... Read More

Refund Opportunities for Nonresidents of Ohio for Ohio Income Tax on Capital Gain from the Sale of Pass-Through Entity.

Under R.C. 5747.212, Ohio personal income tax is imposed on capital gains realized by out-of-state investors who hold a 20% or greater interest in a pass-through entity or closely held C-corporation doing business in Ohio. Per the statute, the nonresident investor’s gain is apportioned to Ohio according to the three-year average of the entity’s Ohio... Read More

Ohio Income Tax: An Individual May Now Spend Up to 7 Months In Ohio, But Still Be Taxed As A Nonresident Under the Bright-Line Residency Test

Qualifying as a nonresident for Ohio income tax purposes, which can significantly reduce tax owed on investment and business income, has gotten easier. Ohio residents are taxed on all their income, subject to a resident credit for income taxed by other states. Conversely, nonresidents are only taxed on their Ohio-sourced income. For a nonresident, pension... Read More