E-filing Ohio with School District

[pittsburghjoe]

When e-filing an Ohio tax return with a School District tax return, these tax returns are rejected and the error message states that W-2s must be attached to verify the School District tax.  So, after attaching the W-2s as "Other" and resubmitting, the same rejection/error occurs.  Is anyone else having this issue, and does anyone know how to fix this besides mailing in the School District tax return?

[TAXOH]

When you entered the W2's on the federal return is the school district entered on the local wages and withholding?

[pittsburghjoe]

Yes, I've entered all of the various School District and RITA taxes withheld.

[TAXOH]

I don't do a lot of school district returns in the area I am in but I've never had to attach the W2's as a pdf to the school district return.  The information has always carried over from the federal to the state.

Do the clients live in a school district that has a school district tax?  Unless they moved there shouldn't be various school districts on the W2.  Only 1 should be listed.

[User FIDO 61]

Believe there is a one school district per e-File limit last I remember running into multiples. Haven't confirmed recently. But I remember when e-Filing Ohio there is a limit of one. The other School Districts required paper file. Unsure if it's RITA, Lacerte, Ohio or some limiting cocktail of all of the above.

*whoops mentioning RITA, my bad - it's not Monday right? Well, wait. Nope, no it's not. Apologies.

[TAXOH]

The school district return has nothing to do with RITA.  RiTA is for local income taxes.  The schools district return gets efiled with the state return and I remember only 1 can be efiled.  The only reason there would be more than 1 though would be if they moved during the year.

[pittsburghjoe]

They didn't move and there is only 1 School District tax return.  Digging into this further, I have changed the description in Box #20 on the W-2 Worksheet from the name of the school district to the school district code. I'm hoping this works.  If not, I'll just remove the School District tax return and e-file OH only, then paper-file the School District.  Will let you know if this works.  Thanks for your input!

[TAXOH]

I think that will work.

[pittsburghjoe]

Switching Box #20 of the Federal W-2 Worksheet from the School District name to the School District code worked.  E-filing was finally accepted.

[TAXOH]

That's good.  Thanks for posting back. 

[The-Tax-Lady]

You can file multiple Ohio School District returns. There was a limit of 1, but that was several years ago and it was a ProSeries software limitation, not Ohio's system.

With multiple School District returns, due to a client moving or the employer's incorrect withholding, I always paper file all the returns with the W2s and anything else I think they will need. I prepare a lot of these multiple SD100s

In my experience, e-filing multiple SD100s usually generates a notice from the Ohio Dept. of Taxation requesting copies of W-2's to verify withholding, along with leases, County Auditor's tax bill or utility bills as proof of new address, if client moved. 

The notice goes to the taxpayer, of course, who generally does nothing or brings in the notice next year, if they remember. By that time Ohio has issued a Billing Variance Notice, also ignored by the client, and Ohio starts offsetting the State refund to pay for a School District tax from a prior year because a response and documents were not received for the original notice. Then it's transferred to the Attorney General's office for collection and becomes one BIG mess. It's much easier to do the work and paper file the returns with the documents I know Ohio will request.

I also file Non-Resident returns for clients with a new filing address but no School Tax liability till the following year because Ohio sends a notice, based on the new address, that a return has not been filed for that School District for the current tax year. Ohio School District's are a royal PITA and I'm surrounded by them. 🙂