Ohio Income Tax Residency Test

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Tax Alert from Maloney+Novotny

Governor signs law to change Ohio income tax residency test

Paul E. Valencic, CPA
(216) 344-5229

June 22, 2018

On June 14, 2018, Ohio Governor John Kasich signed legislation that amends the Ohio income tax residency test, which is effective for tax years beginning on or after January 1, 2018.

In addition to the current law which states that an individual is not domiciled in Ohio if the individual has fewer than 213 contact periods in Ohio, the new legislation adds that the following requirements be met:

  1. The individual has an out-of-state residency for which the individual did not claim a depreciation deduction under IRC 167 on the individual’s federal income tax return;
  2. The individual does not hold a valid Ohio driver’s license or identification card;
  3. The individual did not receive a reduction for in-state owner-occupied dwellings (homestead exemptions), including a reduction in taxes on manufactured of mobile homes; and
  4. An individual’s high-education tuition rate is not based on the individual’s Ohio residence

Taxpayers will assert to the above-referenced declarations on Form IT-DA, Affidavit of Non-Ohio Residency/Domicile, which will be filed with the Ohio Department of Taxation. The presumption that the individual was not domiciled in Ohio is irrebuttable unless the individual or a personal representative falsely files or fails to timely file this statement.

Feel free to reach out to Paul Valencic or your Maloney + Novotny LLC representative with any questions or concerns regarding the changes to the Ohio income tax residency test.