The Ohio IT 4 form, officially known as the Employee's Withholding Exemption Certificate, is a crucial document for employees starting new jobs in Ohio. This updated form, as of December 7, 2020, consolidates previous versions - IT 4, IT 4NR, IT 4 MIL, and IT MIL SP - and is intended for the employer's use to accurately withhold and remit Ohio income tax, and when necessary, school district income tax from employee compensation. It's important for individuals to submit the IT 4 form to their employer at the start of employment, or when any changes occur such as marital status or number of dependents, to ensure the correct amount of tax is withheld from their paychecks.
The Ohio IT 4 form is an essential document for employees and employers in Ohio, marking a significant update as of December 7, 2020. This revised form consolidates previous versions - IT 4, IT 4NR, IT 4 MIL, and IT MIL SP - into a single, more streamlined document. It serves as the Employee’s Withholding Exemption Certificate, which needs to be submitted by employees to their employers at the start or change of employment. This ensures that the correct amount of Ohio income tax, and if applicable, school district income tax, is withheld from their compensation. It covers a broad spectrum of sections, including personal information, claiming of withholding exemptions, and a withholding waiver for qualified individuals, consolidating the process for employees and employers alike. Furthermore, it simplifies the process for individuals with specific situations, such as military personnel and their spouses, to claim exempt status. With its comprehensive updates, the IT 4 form is instrumental in accurately managing tax withholdings, tailored to each employee’s circumstances, thereby avoiding potential underpayment penalties.
As of 12/7/20 this new version of the IT 4 combines and replaces the following forms: IT 4 (previous version), IT 4NR, IT 4 MIL, and IT MIL SP.
hio
Department of
IT 4
Rev. 12/20
Taxation
Employee’s Withholding Exemption Certificate
Submit form IT 4 to your employer on or before the start date of employment so your employer will withhold and remit Ohio income tax from your compensation. If applicable, your employer will also withhold school district income tax. You must file an updated IT 4 when any
of the information listed below changes (including your marital status or number of dependents). You should contact your employer for instructions on how to complete an updated IT 4. Your employer may require you to complete this form electronically.
Section I: Personal Information
Employee Name:
Employee SSN:
Address, city, state, ZIP code:
School district of residence (See THE FINDER at tax.ohio.gov):
School district number (####):
Section II: Claiming Withholding Exemptions
1.
Enter “0“ if you are a dependent on another individual’s Ohio return; otherwise enter “1”
________________
2.
Enter “0” if single or if your spouse files a separate Ohio return; otherwise enter “1“
3.
Number of dependents
4.
Total withholding exemptions (sum of line 1, 2, and 3)
5.
Additional Ohio income tax withholding per pay period (optional)
$_______________
Section III: Withholding Waiver
I am not subject to Ohio or school district income tax withholding because (check all that apply):
I am a full-year resident of Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia.
I am a resident military servicemember who is stationed outside Ohio on active duty military orders.
I am a nonresident military servicemember who is stationed in Ohio due to military orders.
I am a nonresident civilian spouse of a military servicemember and I am present in Ohio solely due to my spouse’s military orders.
I am exempt from Ohio withholding under R.C. 5747.06(A)(1) through (6).
Section IV: Signature (required)
Under penalties of perjury, I declare that, to the best of my knowledge and belief, the information is true, correct and complete.
Signature
Date
IT 4 Instructions
Most individuals are subject to Ohio income tax on their
wages, salaries, or other compensation. To ensure this tax is paid, employers maintaining an office or transacting business in Ohio must withhold Ohio income tax, and school
district income tax if applicable, from each individual who is an employee.
Such employees who are subject to Ohio income tax (and school district income tax, if applicable) should complete sections I, II, and IV of the IT 4 to have their employer withhold the appropriate Ohio taxes from their compensation. If the employee does not complete the IT 4 and return it to his/her employer, the employer:
zWill withhold Ohio tax based on the employee claiming zero exemptions, and
zWill not withhold school district income tax, even if the employee lives in a taxing school district.
An individual may be subject to an interest penalty for underpayment of estimated taxes (on form IT/SD 2210) based on under-withholding.
Certain employees may be exempt from Ohio withholding because their income is not subject to Ohio tax. Such employees should complete sections I, III, and IV of the IT
4only.
The IT 4 does not need to be filed with the Department of Taxation. Your employer must maintain a copy as part of its records.
R.C. 5747.06(A) and Ohio Adm.Code 5703-7-10.
Section I
Enter the four-digit school district number of your primary address. If you do not know your school district of residence or its school district number, use THE FINDER at tax.ohio.gov. You can also verify your school district by contacting your county auditor or county board of elections.
If you move during the tax year, complete an updated IT
4 immediately reflecting your new address and/ or school district of residence.
Section II
Line 1: If you can be claimed on someone else’s Ohio income tax return as a dependent, then you are to enter “0” on this line. Everyone else may enter “1”.
Line 2: If you are single, enter “0” on this line. If you are married and you and your spouse file separate Ohio Income tax returns as “Married filing Separately” then enter “0” on this line.
Line 3: You are allowed one exemption for each dependent. Your dependents for Ohio income tax purposes are the same as your dependents for federal income tax purposes. See R.C. 5747.01(O).
Line 5: If you expect to owe more Ohio income tax than the amount withheld from your compensation, you can request that your employer withhold an additional amount of Ohio income tax. This amount should be reported in whole dollars.
Note: If you do not request additional withholding from your compensation, you may need to make estimated income tax payments using form IT 1040ES or estimated school district income tax payments using the SD 100ES. Individuals who commonly owe more in Ohio income taxes than what is withheld from their compensation include:
zSpouses who file a joint Ohio income tax return and both report income, and
zIndividuals who have multiple jobs, all of which are subject to Ohio withholding.
Section III
This section is for individuals whose income is deductible or excludable from Ohio income tax, and thus employer withholding is not required. Such employee should check the appropriate box to indicate which exemption applies to him/her. Checking the box will cause your employer to not withhold Ohio income tax and/or school district income tax. The exemptions include:
zReciprocity Exemption: If you are a resident of Indiana, Kentucky, Pennsylvania, Michigan or West Virginia and you work in Ohio, you do not owe Ohio income tax on your compensation. Instead, you should have your employer withhold income tax for your resident state. R.C. 5747.05(A)(2).
zResident Military Servicemember Exemption: If you are an Ohio resident and a member of the United States Army, Air Force, Navy, Marine Corps, or Coast Guard (or the reserve components of these branches of the military) or a member of the National Guard, you do not owe Ohio income tax or school district income tax on your active duty military pay and allowances received while stationed outside of Ohio.
This exemption does not apply to compensation for nonactive duty status or received while you are stationed in Ohio.
R.C. 5747.01(A)(21).
z Nonresident Military Servicemember Exemption: If
you are a nonresident of Ohio and a member of the uniformed services (as defined in 10 U.S.C. §101), you do not owe Ohio income tax or school district
income tax on your military pay and allowances.
zNonresident Civilian Spouse of a Military Servicemember Exemption: If you are the civilian spouse of a military servicemember, your pay may be exempt from Ohio income tax and school district income tax if all of the following are true:
y Your spouse is a nonresident of Ohio;
y You and your spouse are residents of the same state; y Your spouse is stationed in Ohio on military orders; and y You are present in Ohio solely to be with your spouse.
You must provide a copy of the employee’s spousal military identification card issued to the employee by the Department
of Defense when completing the IT 4.
Note: For more information on taxation of military servicemembers and their civilian spouses, see 50a U.S.C.
§571.
zStatutory Withholding Exemptions: Compensation earned in any of the following circumstances is not subject to Ohio income tax or school district income tax withholding:
y Agricultural labor (as defined in 26 U.S.C. §3121(g)); y Domestic service in a private home, local college club, or local chapter of a college fraternity or
sorority;
y Services performed by an employee who is regularly employed by an employer to perform such service if she or he earns less than $300 during a calendar quarter;
yNewspaper or shopping news delivery or distribution directly to a consumer, performed by an individual under the age of 18;
yServices performed for a foreign government or an international organization; and
yServices performed outside the employer’s trade or business if paid in any medium other than cash.
*These exemptions are not common.
Note: While the employer is not required to withhold on these amounts, the income is still subject to Ohio income tax and school district income tax (if applicable). As such, you may need to make estimated income tax payments using form IT 1040ES and/or estimated school district income tax payments using form SD 100ES.
See R.C. 5747.06(A)(1) through (6).
The Ohio IT 4 form is an essential document for employees working in Ohio as it directs employers on how much state income tax should be withheld from an employee's paycheck. This form ensures that the correct amount of tax is deducted, thereby avoiding potential issues with under or overpayment of taxes when filing annual tax returns. For those living or working in specific school districts, this form also addresses school district income tax withholdings. Completing the form accurately is crucial for maintaining compliance with Ohio's tax laws. Below are step-by-step instructions on how to fill out the Ohio IT 4 form.
After completing these steps, submit the IT 4 form to your employer. Keep in mind that you should fill out a new IT 4 form anytime your personal or financial situation changes in a way that affects your tax withholdings. This proactive approach will help ensure the appropriate amount of taxes are withheld, simplifying your tax filing process and reducing the likelihood of unexpected tax liabilities or penalties for underpayment.
What is the Ohio IT 4 form?
The Ohio IT 4 form, officially known as the Employee's Withholding Exemption Certificate, is used by employees to inform their employers of the amount of Ohio state income tax to withhold from their paychecks. It consolidates previous versions and specific forms such as IT 4NR, IT 4 MIL, and IT MIL SP into a single document, simplifying the process for employees to communicate their tax withholding preferences, including exemptions, to their employers.
When do I need to submit the Ohio IT 4 form?
You need to submit the Ohio IT 4 form to your employer on or before your start date of employment to ensure the correct amount of Ohio income tax is withheld from your compensation. Additionally, whenever there is a change in your personal information, marital status, or number of dependents, an updated IT 4 form should be submitted to reflect these changes accurately.
How does marital status affect the completion of the IT 4 form?
Marital status significantly impacts how the IT 4 form is completed. If you are single, or if your spouse files a separate Ohio return, you should enter "0" in the relevant section. Conversely, if married and filing jointly, you should enter "1". This distinction ensures that the correct tax amount is withheld based on your filing status.
What if I am a dependent on someone else's tax return?
If you can be claimed as a dependent on another individual's Ohio tax return, you must enter “0” in the section provided on the IT 4 form. This indicates that you are not claiming personal exemptions for yourself in Ohio, which affects the amount of tax your employer will withhold.
Can I claim exemptions for dependents on the IT 4 form?
Yes, you can claim exemptions for dependents on the Ohio IT 4 form. You are allowed one exemption for each dependent, typically aligning with your dependents for federal income tax purposes. The number of dependents you claim directly influences the amount of income tax withheld from your earnings.
What should I do if I expect to owe more Ohio income tax than the withheld amount?
If you anticipate owing more Ohio income tax than what is withheld based on the standard calculation, you can request additional withholding on the IT 4 form. By specifying an extra dollar amount to be withheld each pay period, you can avoid underpayment issues and potential penalties at tax time.
Are there exemptions from Ohio and school district income tax withholding?
Yes, certain situations exempt individuals from Ohio and school district income tax withholding. These include residents of reciprocating states, active duty military members stationed outside Ohio, nonresident military members stationed in Ohio, and nonresident civilian spouses of military members in Ohio under specific conditions. Individuals who qualify for these exemptions must complete the relevant sections on the IT 4 form to notify their employers properly.
When filling out the Ohio IT 4 form, it's important to avoid common errors to ensure the correct amount of tax is withheld from your wages. Avoiding these mistakes helps prevent future discrepancies or unexpected tax liabilities. Here are six mistakes often made:
Not updating the form after life changes: Failing to submit an updated IT 4 form after significant life events such as marriage, divorce, or a change in the number of dependents can lead to incorrect withholding amounts.
Incorrectly claiming exemptions: Misunderstanding when to claim “0” or “1” on lines 1 and 2 or inaccurately reporting the number of dependents on line 3 can significantly affect withholding amounts.
Overlooking the school district information: Not entering the correct four-digit school district number or neglecting this field entirely may result in failing to withhold school district income tax where applicable.
Skipping additional withholding adjustments: Ignoring line 5 when additional state income tax should be withheld can lead to an underpayment of taxes and potential penalties.
Misunderstanding the withholding waiver section: Incorrectly checking boxes in Section III when not truly exempt from Ohio or school district income tax withholding leads to underwithholding.
Forgetting to sign and date the form: An unsigned or undated IT 4 form is not valid, which could result in the employer withholding tax at the highest rate, as if the employee claimed zero exemptions.
Be mindful of these common errors and review your form carefully before submission. Consult with a tax professional if you have specific questions about your situation to ensure accurate withholding.
When preparing or updating employment records in Ohio, it is important to be aware of various forms and documents that are often used alongside the Ohio IT 4 form. These forms play a crucial role in ensuring compliance with tax obligations and supporting accurate tax withholding. Understanding each document’s purpose can help employees and employers navigate Ohio's tax requirements effectively.
In conclusion, the Ohio IT 4 form is part of a broader ecosystem of tax-related documentation necessary for managing and complying with both federal and state tax obligations. Employees and employers alike should ensure they understand the requirements and purposes of these forms to maintain accurate records and meet their tax responsibilities. Familiarity with these forms not only facilitates smoother processes around tax time but also helps in realizing any applicable benefits or exemptions, resulting in a more efficient management of one's tax affairs.
The W-4 form, used at the federal level, bears a strong resemblance to the Ohio IT 4 form in its purpose and structure. Like the Ohio IT 4, the W-4 allows employees to determine the amount of federal income tax to be withheld from their wages. Both forms require personal information and details about marital status and dependents to correctly calculate the withholding amount. The W-4, however, is used for federal tax purposes, while the IT 4 is specific to the state of Ohio.
Another document that shares similarities with the Ohio IT 4 is the W-9 form, Request for Taxpayer Identification Number and Certification. This form is used to provide the correct taxpayer identification number (TIN) to entities that must file information returns with the IRS, to report income paid to a taxpayer. While the W-9 differs in its specific use and audience—targeting independent contractors and freelancers rather than employees—it similarly requires personal identification information to ensure the correct reporting and withholding of taxes.
The IT 4NR form, specifically designed for nonresident employees in Ohio, was a precursor to the revised IT 4. It catered to individuals who earned income in Ohio but lived in another state, ensuring appropriate state income tax withholding for nonresidents. The integration of the IT 4NR into the new IT 4 form streamlines the process, consolidating nonresident considerations into a single, comprehensive document.
The IT 4 MIL form was specifically targeted at military servicemembers to address their unique tax withholding needs. It recognized the different state tax obligations military individuals might have, depending on their residency and duty station placement. By merging the IT 4 MIL into the revised IT 4 form, Ohio has simplified the tax filing process for military personnel, allowing them to declare exemptions based on their status directly on the general withholding document.
Similarly, the IT MIL SP form catered to the spouses of military servicemembers, acknowledging the tax implications of their spousal relationship to those in active duty. By incorporating the IT MIL SP into the new IT 4 form, Ohio provides a unified process for both military members and their spouses to navigate tax exemptions related to military service, significantly simplifying paperwork for these families.
The IT/SD 2210 form, used for calculating interest penalties for underpayment of estimated taxes in Ohio, while not directly similar in form, is connected by the implications of how the IT 4 is completed. Inaccuracies or failures to properly adjust withholding on the IT 4 can lead individuals to owe more in taxes, thus necessitating the IT/SD 2210's use. This highlights the importance of correctly completing the IT 4 form to avoid potential penalties.
The SD 100ES, the estimated tax payment voucher for school district income tax, parallels the IT 4's optional section for additional withholding. While the SD 100ES is for direct payment rather than through withholding, it addresses a similar need: ensuring the correct amount of taxes paid on income, specifically for those living in taxing school districts in Ohio. This voucher, like the IT 4, aids taxpayers in managing their financial obligations throughout the year.
The Ohio IT 1040ES, a form for estimating state income tax payments, while primarily used for individuals who self-calculate their quarterly tax payments, shares the foundational concept with the IT 4 of managing tax liabilities proactively. Both documents are vital in helping Ohio residents and workers accurately meet tax obligations, albeit through different mechanisms—estimated payments versus withholdings.
When completing the Ohio IT 4 form, it's essential to ensure accuracy and compliance. Below are four key practices to follow and four to avoid for a seamless experience.
There are several misconceptions about the Ohio IT 4 form, which is essential for the proper withholding of state taxes from employees' wages. Understanding these misconceptions is critical for both employers and employees to ensure compliance with Ohio tax laws.
Misconception 1: The IT 4 form is optional. Many people believe submitting the IT 4 form to their employer is optional. However, it is mandatory for employees who want the correct amount of Ohio income tax withheld from their compensation. Failure to submit the form can result in under-withheld taxes and possible penalties.
Misconception 2: One form fits all employment scenarios. While the updated IT 4 form combines previous versions (IT 4, IT 4NR, IT 4 MIL, and IT MIL SP) into one document, it's tailored to cover different employment statuses, including nonresidents and military personnel. The form ensures specific situations are addressed correctly for tax withholding purposes.
Misconception 3: Once filed, the IT 4 doesn't need updating. Another common misconception is that once the IT 4 form is filed with an employer, it never needs to be updated. In reality, changes in personal information, marital status, or the number of dependents necessitate submitting an updated IT 4 form to reflect these life changes accurately.
Misconception 4: The IT 4 form determines tax liability. Some employees mistakenly believe that the information provided on the IT 4 form determines their tax liability. However, the form is used solely for withholding purposes. The actual tax liability is determined when filing the annual state income tax return.
Misconception 5: All employees must claim the same number of exemptions. It's often thought that employees must claim the same number of exemptions on their IT 4 as they do on their federal W-4 form. While there may be similarities, Ohio law and the specific situations of an individual or family might lead to different exemption claims on the IT 4 form.
Misconception 6: Nonresident military spouses must file the IT 4. Some nonresident military spouses assume they must file an IT 4 form. In reality, they may be exempt from Ohio income tax withholding if they meet certain criteria, such as residing in Ohio solely due to their spouse's military orders. Properly ticking the exemption box in Section III can prevent unnecessary withholdings.
It's important for both employers and employees to be aware of these misconceptions to ensure accurate tax withholding and compliance with Ohio tax laws. Accurate completion and timely updates to the IT 4 form can help avoid unexpected tax liabilities and penalties.
Understanding the Ohio IT 4 form is crucial for ensuring the correct amount of income tax is withheld from your paycheck. Here are seven key takeaways to help navigate this process:
Completing the Ohio IT 4 form accurately is important for both employees and employers to ensure compliance with state tax obligations. Always keep a copy for your records and consult with a tax professional if you have specific questions about your tax situation.
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