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Level 2
December 6, 2019
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In preparing Ohio Form IT 4708, and filing a composite return, should a nonresident's share of income be taxable to a partnership and the tax paid by the partnership?

  • December 6, 2019
  • 5 replies
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Best answer by sjrcpa

Yes. That's the point of the composite return - one return filed by the partnership instead of many individual nonresident returns.

5 replies

sjrcpa
sjrcpaAnswer
Level 15
December 6, 2019

Yes. That's the point of the composite return - one return filed by the partnership instead of many individual nonresident returns.

The more I know the more I don’t know.
Level 2
December 6, 2019
Thanks for your help.
Level 3
December 6, 2019

Ohio has a $250K business deduction for individual joint filers which might make composite filings an unattractive option and better to use the withholding form whereby most of the tax will be refunded. 

Level 2
December 6, 2019
According to my understanding of the State of Ohio's instructions, starting in 2013, a non-res individual included on the IT-4708 composite form may still opt to file the OH 1040 and claim the business income deduction. See https://www.tax.ohio.gov/faq/tabid/6315/Default.aspx?QuestionID=394&AFMID=11354