Remote work (also known as work from home or telecommuting) is a type of flexible working arrangement that allows an employee to work from a remote location outside of corporate offices. Due to the coronavirus pandemic, this arrangement has become increasingly popular.
During 2020, employers were required to continue withholding for an employee’s principal place of work (as established pre-pandemic) even though they may have been working at home. However, with the passage of the State of Ohio’s House Bill 110, beginning in 2021, you may now shift your principal place of work to home.
If you were working at home during all or part of 2021, yet your form W-2 shows that your wages were withheld for another municipality (i.e. Dayton, Kettering, etc.), you are entitled to a refund for the taxes withheld to that city. You are only subject to the other city’s income tax for the time actually worked in that city. Not only will you shift your tax dollars to Oakwood, you will also benefit personally.
Click on the following link to view an example of potential savings: Potential Savings Example
Follow these steps in order to obtain your refund:
- Complete the Days Available Computation, including the Days Worked Inside schedules, for those days in which you physically worked in the city for which your wages were subject to tax.
- Sign Page 1 of the Days Available Computation.
- Have your employer sign Page 1 of the Days Available Computation.
- Complete the tax return for the City from which you are obtaining a refund.
- Attach your form W-2 to the return and mail.
When you file your Oakwood income tax return:
- Attach a copy of the other city return requesting a refund. Any tax payable related to your refund request will be due within two weeks of receipt of your refund.