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Ohio Updates Tax Laws for Nonresidents

On September 13, 2018, a new Ohio law takes effect governing how an individual’s residence is determined for income tax purposes. Sub. H.B. 292, which was signed into law by Gov. John Kasich on June 15, changes the “irrebuttable presumption” of non-Ohio domicile for tax years 2018 and onward, and can dramatically affect your taxes.

Ohio taxes the income of residents and non-residents differently. Under Ohio law, Ohio non-residents receive a tax credit for all income earned outside of Ohio, but residents receive only the lesser of income subjected to tax in another state, or the amount of tax paid to another state on that income. For example, if income is earned in another state with no income tax, a non-resident will get full credit for that income while a resident will get no credit.

The revisions to Ohio Revised Code 5747.24 have changed the method by which an individual is presumed to be a non-resident. Under the new law, to be irrebuttably presumed not to be domiciled in Ohio, an individual must meet several requirements, and must file a statement of non-residency detailing those requirements on or before October 15th.

If you have an abode in Ohio and do not file a statement of non-residency, you will be presumed to be an Ohio resident, with all the consequences of that determination. This presumption can be rebutted, but may require significant evidence regarding your contact with the state of Ohio.

Please contact us for more details regarding the new filing requirement, and how we can help you with this new law.

This article is provided as a public service by Mallory Law Office, LLC. While the information on this site is about legal issues, it is not legal advice, legal counsel or legal representation. Because of the rapidly changing nature of the law and our reliance upon outside sources, we make no warranty or guarantee of the accuracy or reliability of information contained herein.