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.

Why is my residency status important?

An Ohio resident is subject to Ohio’s individual income tax on all of their income. A resident taxpayer is allowed a “resident” credit for the lesser of income subjected to tax in another state, or the amount of tax paid to another state on that income. Conversely, a nonresident is allowed a “nonresident” credit for all income not earned or received in Ohio.

So, for example, if the income is from a state that imposes no tax, a resident will get no credit, but a nonresident will. If the income is earned in Ohio, both the resident and the nonresident will be subject to Ohio tax.

A part-year resident is eligible for the nonresident credit for the portion of the year they were a nonresident and eligible for the resident credit for the portion of the year they were a resident.

See R.C. 5747.05(A), (B) and (C).