Ohio issues guidance on changes to residency guidelines

The Ohio Department of Taxation updated its residency guidance pertaining to the tax imposed on resident and nonresident individuals for taxable years beginning on or after January 1, 2018. The release covers who is subject to Ohio personal income tax and who is a resident, contact period test and provides guidance for the irrebuttable presumption of a non-Ohio domicile. H.B. 292 has amended R.C. 5747.24 to impose new requirements for an individual to be irrebuttably presumed not to be domiciled in Ohio for the taxable year. The release also provides guidance regarding the rebuttable presumption of Ohio domicile and notes that each individual (even if filing a joint Ohio return) who wants the presumption of Ohio nonresidency must file the statement of Ohio nonresidency. (Income Tax Information Release IT 2018-01, Ohio Department of Taxation, August 31, 2018.)

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