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 formula for allocating compensation for a nonresident?

Compensation allocable to Ohio = Total compensation income X Allocation Ratio.

Where “compensation” includes, among other things, wages, salaries, tips, nonqualified deferred compensation, and stock options, and the “allocation ratio” is the total days worked in Ohio from grant to exercise for the issuing company versus total days worked everywhere from grant to exercise for the issuing company. The ratio calculation might span multiple years. The taxpayer should assume a 260-day work year unless s/he can provide evidence to the contrary.

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