Individual FAQs - Specific Filing Questions - Regional Income Tax Agency

Can my Federal Schedule C, E, F or K-1 net operating losses offset my W-2 wage income?

Net operating losses cannot be used to offset wages or W-2 income.

I have Federal Schedule income or loss in multiple municipalities. How should I report these on a RITA return?

The activity of each municipality (profit or loss) must be reported on Form 37, Schedule J.

Business activities must be separated by location in order to properly allocate any tax due.

3. NOLs and Schedule C, E, and F Income

I have Federal Schedule C income and Federal Schedule E net operating loss. Can I offset my Federal Schedule C income with my Federal Schedule E net operating loss?

In general, yes. Please refer to the definition of "Income" in the RITA Rules and Regulations documents found under your municipality listed at the RITA Municipalities page. For residents, also refer to Section 6 of the RITA Rules and Regulations as listed under each municipality in the RITA Municipalities page.

4. Partnerships

I am an owner/partner in a pass-through entity that paid municipal net profit tax to a RITA municipality. How do I report this tax paid on my behalf on a RITA municipal income tax return?

Reporting requirements depend on where you live.

If you are a RITA municipality resident, report pass-through income and associated payments earned in any non-resident municipality on Form 37, Schedule P. If you are a resident of a RITA municipality and have pass-through income earned in that municipality, complete Worksheet R and report that amount on Form 37, Line 7b.

If you are not a RITA municipality resident, you do not need to report your pass-through income.

5. Multiple W-2s

I have multiple W-2s, from the same employer, showing local tax withheld to various municipalities. How do I report all of these amounts on a RITA return?

List each wage and tax withheld, to the respective municipality on separate lines of the Form 37. For most employees, the grand total of these wages should not exceed Box 5 - Medicare wages on your W-2.

6. Missing W-2s

I lost my W-2s or my employer never mailed me copies of my W-2s. How can I get a copy of my W-2s?

You should contact your employer and request a copy.

7. Non-Ohio Income

Does RITA recognize local tax withheld or paid to municipalities outside the State of Ohio?

Local taxes paid to a municipality outside the State of Ohio will receive the same credit allowed by your resident municipality for tax paid to municipalities inside the State of Ohio.

Generally, a county tax is not considered a municipal income tax and most municipalities do not allow credit for county taxes paid. Exceptions to this rule exist. For more information, visit the RITA Municipalities page, click on your municipality and review the Special Notes section that relates to the appropriate tax year.

8. School District Taxes

Do I receive a credit for taxes paid to a school district?

No. School district tax is not municipal income tax.

Generally, a four digit code (such as 2509) and/or the codes SD, LSD, CSD listed in box 20 of your W-2 indicates school district tax. These amounts SHOULD NOT be reported on your RITA return.

9. Changes in Filing Status

I made payments on a joint account and now I’m filing separately (single). How do I request that the payments on the joint account be transferred to my individual account?

Fill out a Request for Allocation of Payments Form.

Both parties on the joint account will need to sign the form.

10. S-Corp. (scorp, Scorp, subchapter S-Corporation)

Are S-Corp. distributive shares taxable?

Shareholder's distributive shares that do not represent wages are generally not taxable and should not be reported on Form 37. Exceptions exist. Refer to the S-Corp. Owner Residence Tax Treatment Summary for a complete list.

11. Rideshare

Is income earned by rideshare drivers taxable?

Income earned by “transportation network company drivers” (rideshare such as Uber and Lyft) is exempt from municipal income tax because state statute specifically preempts local taxation or regulation of transportation network companies, transportation network company drivers and transportation network company services. This preemption can be found in R.C. 4925.09(A) and does not apply to taxicabs or delivery services.

A transportation network company driver is a person who receives connection to passengers and potential passengers and related services from a transportation network company in exchange for the payment of a fee to the company AND who uses a personal vehicle to offer or provide transportation network company services to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee. R.C. 3942.01(G)

12. Statutory Employee

I am a statutory employee and report my W-2 income on a Federal Schedule C. How do I report this income on my RITA return?

Do not report the wages that are included on the Schedule C as separate W-2 income. Only report the Schedule C income. However, any taxable income from the W-2 that is not reported on the Schedule C (401K or other deferred compensation contributions) should be reported as W-2 income.