Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

What is the "sharing economy" and how does it impact my federal and state income tax filing requirements?

The “sharing economy” is best described as those individuals who provide services to consumers, such as rides in personal vehicles for a fee, or the use of property, such as apartments or homes for rent, or selling items on the internet. The IRS created the Sharing Economy Resource Center. It has tips such as:

  • Income is generally taxable, even if the recipient does not receive a Form 1099, W-2 or some other income statement, but some or all business expenses may be deductible.
  • There are some simplified options available for deducting many business expenses.
  • People involved in the sharing economy often need to make estimated tax payments during the year to cover their tax obligation.
  • Alternatively, people involved in the sharing economy who are employees at another job can often avoid needing to make estimated tax payments by having more tax withheld from their paychecks.

In addition, income from these types of endeavors could be business income under Ohio law.  Please remember, Ohio provides a deduction of up to $250,000 for business income earned by individuals and amounts earned greater than $250,000 are taxed in Ohio at a flat 3% rate.