The pandemic resulted in many taxpayers working from home. In normal times, this means you do not pay local income taxes to the city where your office or company was located. Ohio changed this policy and then partially changed it back. The changes have created confusion and are complicated by ongoing litigation. The litigation creates more uncertainty but could entitle you to an additional refund.
Cities complained about their revenue dropping because people were working from home. Governor DeWine issued an emergency law requiring Ohioans to pay taxes to their work city if they were working from home due to covid. The result: taxpayers pay taxes to a city they do not live in nor work in.
Due to many complaints, Ohio Legislature amended Dewine’s emergency law. Taxpayers who work at home for more than 20 days in 2021 can apply for a refund of taxes paid to the work city. The Regional Tax Authority (RITA)
To complicate things, there is currently a lawsuit that may make the changes by Ohio Legislature retroactive to 2020. This legislation is pending and it is unclear how long it will take to settle.
Check with your tax advisor to see if this applies to you. If you don’t have an advisor but work in Berea or another RITA jurisdiction, you can use RITA form 10A to file for a refund.
If you are looking for a Tax Advisor, Mark Dent from On the Mark Tax Service is accepting new clients.
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