Article Guide
The Ohio IT 4 form serves as an essential tool for employees in Ohio, ensuring that the correct amount of state income tax is withheld from their paychecks. Introduced on December 7, 2020, this updated version of the IT 4 combines several previous forms, including the IT 4NR, IT 4 MIL, and IT MIL SP, streamlining the process for both employees and employers. When starting a new job, employees must submit the IT 4 to their employer before their first paycheck. This form collects personal information, such as the employee's name, Social Security number, and school district of residence. It also allows employees to claim withholding exemptions based on their marital status and number of dependents, which can significantly affect the amount withheld. If an employee's situation changes—like a change in marital status or the birth of a child—they must update their IT 4 promptly. Additionally, the form includes a section for individuals who may be exempt from Ohio income tax withholding, such as military personnel and certain residents of neighboring states. Understanding the IT 4 is crucial for employees to ensure compliance with tax regulations while optimizing their take-home pay.
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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.
IT 4
Rev. 01/24
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
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 |
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.
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
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
Section I
Enter the
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).
zNonresident 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:
yYour spouse is stationed in Ohio on military orders; and
yYou 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.
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.
Note: For more information on taxation of military servicemembers and their civilian spouses, see 50 U.S.C.A. 4001 and tax.ohio.gov/military.
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).
Form Specifications
| Fact Name | Details |
|---|---|
| Form Purpose | The IT 4 form is an Employee’s Withholding Exemption Certificate used to determine Ohio income tax withholding from employee compensation. |
| Form Replacement | As of December 7, 2020, the IT 4 replaces previous forms including IT 4, IT 4NR, IT 4 MIL, and IT MIL SP. |
| Submission Deadline | Employees must submit the IT 4 to their employer before starting employment to ensure proper withholding of Ohio income tax. |
| Updating Information | Any changes in personal information, such as marital status or number of dependents, require filing an updated IT 4 with the employer. |
| Governing Law | The IT 4 is governed by Ohio Revised Code R.C. 5747.06(A) and Ohio Administrative Code 5703-7-10. |
Ohio It 4: Usage Guidelines
Filling out the Ohio IT 4 form is an essential step for employees to ensure the correct amount of state income tax is withheld from their paychecks. Once you complete the form, submit it to your employer. They will use the information provided to determine the appropriate withholding amounts. It's important to keep this form updated whenever your personal circumstances change.
- Begin with Section I: Personal Information.
- Enter your Employee Name.
- Provide your Employee SSN.
- Fill in your Address, including city, state, and ZIP code.
- Identify your School District of Residence using THE FINDER at tax.ohio.gov and enter the corresponding School District Number.
- Move to Section II: Claiming Withholding Exemptions.
- For line 1, enter “0” if you are a dependent on someone else's Ohio return; otherwise, enter “1”.
- For line 2, enter “0” if you are single or if your spouse files a separate Ohio return; otherwise, enter “1”.
- For line 3, enter the number of dependents you have.
- Calculate the total withholding exemptions for line 4 by summing lines 1, 2, and 3, and enter that number.
- If you wish to withhold additional Ohio income tax, specify that amount for line 5.
- Proceed to Section III: Withholding Waiver.
- Check all applicable boxes to indicate why you may not be subject to Ohio or school district income tax withholding.
- Finally, complete Section IV: Signature.
- Sign and date the form to declare that the information is true and complete.
Your Questions, Answered
What is the Ohio IT 4 form?
The Ohio IT 4 form is an Employee’s Withholding Exemption Certificate that allows individuals to inform their employers about the appropriate amount of Ohio income tax to withhold from their wages. This form combines and replaces several previous forms, including the IT 4 (previous version), IT 4NR, IT 4 MIL, and IT MIL SP. It is essential for ensuring that the correct amount of state and, if applicable, school district income tax is withheld from an employee's compensation.
When should I submit the IT 4 form?
It is crucial to submit the IT 4 form to your employer on or before your employment start date. Doing so ensures that your employer can withhold and remit the appropriate Ohio income tax from your paychecks. If you fail to submit the form, your employer will withhold taxes based on you claiming zero exemptions, which may not reflect your actual tax situation.
What information do I need to provide on the IT 4 form?
The IT 4 form requires you to provide personal information, including your name, Social Security Number, address, and school district of residence. Additionally, you will need to indicate your withholding exemptions, which include your dependency status, marital status, and the number of dependents you claim. Finally, you must sign the form to certify that the information is accurate.
How do I determine my school district number?
Your school district number can be found using the FINDER tool available at tax.ohio.gov. If you are unsure, you may also contact your county auditor or the county board of elections for assistance. It is important to provide the correct school district number to ensure proper tax withholding.
What if my personal circumstances change after I submit the IT 4 form?
If any of your information changes, such as your marital status or the number of dependents, you must file an updated IT 4 form. Promptly notifying your employer of these changes helps ensure that the correct amount of tax is withheld from your paychecks moving forward.
Who is exempt from Ohio income tax withholding?
Certain individuals may be exempt from Ohio income tax withholding. This includes full-year residents of states like Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia, as well as military servicemembers stationed outside Ohio. Nonresident military servicemembers and their civilian spouses may also qualify for exemptions. To claim an exemption, you must check the appropriate box on the IT 4 form and provide any required documentation.
What happens if I do not submit the IT 4 form?
If you do not submit the IT 4 form, your employer will withhold Ohio income tax based on the assumption that you are claiming zero exemptions. This may result in higher tax withholding than necessary. Additionally, you may face penalties for underpayment of estimated taxes if your withholding does not accurately reflect your tax liability.
Can I request additional withholding on the IT 4 form?
Yes, you can request additional Ohio income tax withholding on the IT 4 form. If you anticipate owing more in taxes than what will be withheld from your compensation, you can specify an additional amount for your employer to withhold per pay period. This option can help you avoid underpayment penalties at tax time.
Do I need to submit the IT 4 form to the Ohio Department of Taxation?
No, the IT 4 form does not need to be submitted to the Ohio Department of Taxation. Instead, your employer is responsible for maintaining a copy of the form as part of their records. It is essential to keep your information accurate and up-to-date to ensure proper tax withholding throughout your employment.
Common mistakes
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Not Submitting on Time: Failing to submit the IT 4 form to your employer before your employment start date can lead to your employer withholding taxes incorrectly.
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Incorrect Personal Information: Providing inaccurate information such as your name, Social Security number, or address can cause issues with tax withholding and reporting.
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Ignoring School District Information: Not entering your school district number can lead to incorrect withholding of school district income tax.
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Misunderstanding Exemptions: Miscalculating your withholding exemptions can result in too much or too little tax being withheld from your paycheck.
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Failing to Update Information: Not submitting an updated IT 4 form when your marital status or number of dependents changes can lead to incorrect tax withholding.
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Overlooking Signature Requirement: Forgetting to sign the form means it will not be considered valid, which can lead to complications for both you and your employer.
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Neglecting Additional Withholding: If you expect to owe more taxes than what is withheld, failing to request additional withholding can lead to unexpected tax bills.
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Not Understanding Residency Rules: Misunderstanding your residency status and its implications for tax withholding can result in improper filing.
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Using Incorrect Exemption Codes: Checking the wrong boxes for withholding waivers can lead to incorrect tax withholding, impacting your overall tax liability.
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Ignoring Employer Instructions: Not following your employer's specific instructions for completing the IT 4, especially if they require electronic submission, can cause delays or errors.
Documents used along the form
When completing the Ohio IT 4 form, you may find it helpful to have several other forms and documents on hand. Each of these serves a specific purpose related to tax withholding, exemptions, or income reporting. Below is a list of commonly used forms that complement the IT 4.
- IT 1040: This is the standard Ohio individual income tax return form. It is used by residents to report their income, calculate their tax liability, and claim any refunds due.
- IT 1040ES: This form is for making estimated income tax payments. If you expect to owe more taxes than what is withheld from your paycheck, use this form to pay quarterly estimates.
- SD 100: The School District Income Tax Return form is used to report income and pay any applicable school district taxes. This is particularly important for residents in school districts that impose an income tax.
- SD 100ES: Similar to the IT 1040ES, this form is used for making estimated payments for school district income taxes. It helps ensure you meet your tax obligations throughout the year.
- W-4: The IRS Form W-4 is used by employees to indicate their tax situation to their employer. This helps determine the amount of federal income tax to withhold from their paychecks.
- IT 4NR: Although replaced by the IT 4, this form was previously used by nonresidents to claim exemptions from Ohio withholding. Understanding its provisions can still be useful.
- IT 4 MIL: This form was specifically for military personnel and their spouses to claim exemptions from Ohio withholding. Familiarity with its content can assist in navigating military tax situations.
- IT MIL SP: This was used by civilian spouses of military personnel for similar purposes as the IT 4 MIL. It is important for military families to understand their tax responsibilities.
- Form 1099: This form reports various types of income received throughout the year, such as freelance earnings or interest income. It is essential for accurate tax reporting.
- Form 4868: This is the application for an automatic extension of time to file your federal tax return. While it pertains to federal taxes, understanding extensions can be beneficial for managing your overall tax obligations.
Having these forms ready can streamline your tax preparation process. Each document plays a role in ensuring that your tax obligations are met accurately and efficiently. If you have questions about any of these forms, consider reaching out to a tax professional for assistance.
Similar forms
The Ohio IT 4 form is similar to several other forms related to employee withholding exemptions. Here are four documents that share similarities with the IT 4:
- IT 4 (Previous Version): This earlier version of the IT 4 served the same purpose of allowing employees to claim withholding exemptions. The new IT 4 combines features from this previous form to streamline the process.
- IT 4NR: The IT 4NR was specifically for non-residents working in Ohio. Like the IT 4, it allowed employees to declare their exemption status for Ohio income tax withholding.
- IT 4 MIL: This form catered to military personnel. It provided a way for military members to claim exemptions from Ohio income tax withholding, similar to the provisions found in the IT 4.
- IT MIL SP: The IT MIL SP was designed for the spouses of military servicemembers. It allowed them to declare their exemption status, paralleling the IT 4's ability to address withholding exemptions for various individuals.
Dos and Don'ts
When filling out the Ohio IT 4 form, it’s important to ensure that you provide accurate and complete information. Here’s a list of things to keep in mind:
- Do submit the IT 4 form to your employer before your employment start date to ensure proper withholding of Ohio income tax.
- Do update your IT 4 form whenever there is a change in your personal information, such as marital status or number of dependents.
- Do double-check your school district number by using THE FINDER at tax.ohio.gov if you are unsure.
- Do enter “0” on line 1 if you can be claimed as a dependent on someone else’s Ohio return.
- Don’t forget to sign and date the form; it is a required step to validate your submission.
- Don’t submit the IT 4 form to the Department of Taxation; it should be kept by your employer.
- Don’t neglect to check all applicable exemptions in Section III if you believe you qualify for withholding waivers.
Misconceptions
Understanding the Ohio IT 4 form can be challenging, and there are several misconceptions that often arise. Here are eight common misunderstandings:
- It's just a tax form. Many believe the IT 4 is only for tax purposes, but it also determines how much tax your employer withholds from your paycheck.
- Only new employees need to fill it out. This form should be updated whenever your personal information changes, such as your marital status or number of dependents.
- Submitting the IT 4 is optional. If you don’t submit the form, your employer will withhold taxes as if you are claiming zero exemptions, which could lead to a larger tax bill later.
- All employees are subject to Ohio income tax. Certain individuals, like military servicemembers stationed outside Ohio, may be exempt from withholding.
- Filing the IT 4 with the Department of Taxation is necessary. The IT 4 does not need to be submitted to the state; it is kept by your employer.
- Only Ohio residents need to fill it out. Nonresidents who work in Ohio may also need to complete the IT 4, especially if they qualify for withholding exemptions.
- Once filled out, it never needs to be changed. It’s important to update the form whenever there are changes in your life that affect your tax situation.
- It's the same as other tax forms. The IT 4 is unique in its purpose and requirements, distinct from other tax forms you may encounter.
Being aware of these misconceptions can help you navigate the tax process more effectively and ensure that you are compliant with Ohio tax regulations.
Key takeaways
Here are key takeaways for filling out and using the Ohio IT 4 form:
- The IT 4 form is essential for ensuring proper Ohio income tax withholding from your paycheck.
- Submit the IT 4 form to your employer before your employment start date.
- Update your IT 4 whenever your personal information changes, such as marital status or number of dependents.
- Employers may require electronic submission of the IT 4.
- Section I collects personal information, including your name, Social Security Number, and school district.
- To claim withholding exemptions, complete Section II accurately based on your situation.
- Check the appropriate boxes in Section III if you qualify for withholding exemptions.
- Sign and date the form in Section IV to validate your information.
- Employers will withhold taxes based on the information provided; failure to submit the form may result in zero exemptions claimed.
- The IT 4 does not need to be filed with the Department of Taxation; your employer keeps it on file.