How does Ohio tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in Ohio.
• If you're considered a full-year or part-year resident of Ohio, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.


2. I worked remotely from Ohio.
• Ohio taxes income earned for personal services performed while in Ohio (even if you're a nonresident). This includes remote work for an employer or clients based outside Ohio if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your Ohio resident return for any income required to be reported in multiple states.


3. My employer was based in Ohio.
• If your employer was based in Ohio, they may have withheld Ohio taxes from your wages as shown on your W-2. However, as long as you didn't live or work in Ohio, you will not owe Ohio taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If your employer didn't withhold Ohio taxes and you were a nonresident of Ohio, you probably don't need to file an Ohio return at all unless you otherwise have an Ohio nonresident filing requirement.

If your wages were minimal and you didn't do any other business in Ohio, it's possible you will be exempt from filing regardless of residency. See the Ohio IT 1040 instructions for more information.