FAQs - Employer Withholding

I own a store in Kenton, Ohio and I employ the wife of a local Army recruiter. She has told me that she and her husband are not residents of Ohio. How do I handle Ohio state income tax withholding for her wages so that I'm in compliance with the federal military spouse tax provisions?

A 2009 amendment to the federal Servicemembers Civil Relief Act provides that if a servicemember and his/her spouse are domiciled in the same state, their domicile does not change when they move to another state pursuant to the servicemember's military orders. You and your employee should complete Ohio form  IT MIL-SP and submit it to the Ohio Department of Taxation. If you have an eligible military spouse working for you, you are not required to withhold Ohio income tax nor report her wages to the Ohio Department of Taxation. You should determine what the withholding and reporting requirements are for her state of domicile, and comply accordingly.

For federal income tax purposes, her income must be withheld following the normal business rules.

Please note that the Ohio form IT MIL-SP asks the employee to provide a copy of his/her spousal military ID card that was issued to the employee by the Department of Defense.

The Ohio form IT MIL-SP applies only to Ohio state income taxes. Municipal income tax in Ohio is not administered by the state. It is administered separately by each municipality that has enacted a tax. Questions about municipal income tax should be directed to the appropriate municipality.

For more information:

You can reach us by e-mail at Military-Info@tax.state.oh.us. Our toll-free number for individual taxpayer inquiries is (800) 282-1780, and the toll-free number for forms is (800) 282-1782.