Back to the Taxes
I'd thought I was done with my 2008 taxes, but I'd been confused (realizing this was the one damper on my enjoyment of Thanksgiving break). As a part-year resident of Ohio with only self-employment income earned in Massachusetts while I was living in MA but a resident of OH, I didn't think I needed to file state or municipal tax returns in OH. That was incorrect.
To confuse things further, OH and Ohio Regional Income Tax Agency municipalities (of which Shaker Heights is one) have different ways of calculating which not-currently-in-state resident business income is taxable.* RITA wants a piece of the action for all income earned while resident in the municipality in question, no matter where the business was actually done. OH taxes a portion of self-employment income by out-of-state residents, based on how much of the business activity was in OH (there's a complex formula, but for me the answer was "none of it"). So after calculating things out, I owe Shaker Heights $42 through RITA and owe OH nothing... but RITA might charge interest, and OH could charge interest plus a ~$400 penalty for not filing on time.
Of course, I'll include "please don't fine this poor confused taxpayer" letters, but it's not clear I'll have any recourse if they turn me down aside from handing over the loot. What a pain.
* NB: IANATL, this is my best understanding after reading a bunch of confusingly-written forms and instructions. (RITA does pretty well, but the OH state documents are more confusing than the federal ones, even.)
To confuse things further, OH and Ohio Regional Income Tax Agency municipalities (of which Shaker Heights is one) have different ways of calculating which not-currently-in-state resident business income is taxable.* RITA wants a piece of the action for all income earned while resident in the municipality in question, no matter where the business was actually done. OH taxes a portion of self-employment income by out-of-state residents, based on how much of the business activity was in OH (there's a complex formula, but for me the answer was "none of it"). So after calculating things out, I owe Shaker Heights $42 through RITA and owe OH nothing... but RITA might charge interest, and OH could charge interest plus a ~$400 penalty for not filing on time.
Of course, I'll include "please don't fine this poor confused taxpayer" letters, but it's not clear I'll have any recourse if they turn me down aside from handing over the loot. What a pain.
* NB: IANATL, this is my best understanding after reading a bunch of confusingly-written forms and instructions. (RITA does pretty well, but the OH state documents are more confusing than the federal ones, even.)