Do I Need to File Columbus City Income Taxes if I Work There?

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13 Mar Do I Need to File Columbus City Income Taxes if I Work There?

Taxes can be complicated. On top of a federal return, you also have to deal with a state and (sometimes) a city return. Couple that with the fact that some people live in one city and work in another, and it’s easy to get lost in the details.

Do I Need to File Columbus City Income Taxes if I Work There?

This is a question we get frequently. Those who work in Columbus often get that amount withheld (2.5% is the tax rate for Columbus). However, if they don’t live there, so it’s often unclear which form to file. For W-2 individuals, it’s quite easy. If you work in Columbus but live somewhere else, you do not need to file Columbus city income taxes. Thankfully, most cities give out a tax credit for the amount you had withheld, so you don’t have to worry about paying city taxes twice. More rules and facts about Columbus taxes can be found at the Columbus Income Tax Division website.

If you had less than 2.5% withheld, though, that’s when you’ll need to file a Columbus return and pay the difference. For example, if you had only 1% withheld, then you’ll have to file a return and pay the remaining 1.5%. This is rare, but it happens.

Are the Rules Different for Self-Employed Individuals?

As is the case with a lot of tax laws, city taxes work differently for the self-employed. We get a lot of real estate agents who live in one place, but sell houses in many different cities. Generally speaking, they don’t have to worry about paying taxes in a city they don’t live in, but there is a catch.

If that same real estate agent works at least 21 days in Columbus, then they must file Columbus city income taxes. That’s the rule for self-employed individuals. As such, it’s important to keep track of your days, where you spent them, and for how long. If you’re worried about owing too much, there are plenty of self-employed tax deductions you can take.

If you need help filing city taxes, give us a call at 614-524-4888 or 614-310-0506!

We work closely with you to handpick a solution for your unique tax situation.
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