Do you live in the Cleveland area and work from home? If so, you should be aware of the many work from home tax benefits. Aside from potential home office deductions and other write-offs routinely claimed by the self-employed (see "Tax Reduction Strategies for the Self-Employed"), a huge benefit could depend on comparing the Municipal Income Tax Rate of the town where you live to the city or town of your employer.

Change in Ohio's Municipal Income Tax in 2021 Could Mean Big Work From Home Tax Benefits

At Ken-Mar Tax we're continuously looking for ways our tax preparation clients can pay less taxes, which is why Ken Weinberg earns an additional 72 hours of education every three years, from an IRS CE provider, to maintain the special designation of an IRS Enrolled Agent. The low-lying fruit this tax season is this change in Ohio's municipal income tax law for the tax year of 2021 that would benefit remote workers and lead to work from home tax benefits.  A Cleveland.com article, "Paid income tax for a city you didn’t work in in 2021? Here’s how to get your refund" details multiple examples of when to pursue a refund and when it won't be applicable to your work from home situation. << print version >>

Work Remote Tax Benefits if You Live in a Township

If you live in a township i.e. Chagrin Falls Township or Olmsted Township in Cuyahoga county and Amherst Township, Columbia Township, Elyria Township, Grafton Township or any of the other townships in Lorain County, unlike other municipalities, townships do not levy an income tax on residents. What this means for your work from home tax benefits is that you should be entitled a refund if your employer is not in a township and collected Municipal Income Tax in 2021.

Cleveland/Akron Area Municipal Tax Rate Table Below

In order to decide if you are eligible for the remote worker refund, look at the table below and compare the city where you live to the city where your employer is located.  For example, if your employer is in Oberlin, with a 2.5% tax rate, and you worked from your home in Amherst, with a 1.5% tax rate, you are likely entitled to 1% of your income from 2021, or $500 for a $50,000/yr job. You can download a Municipal Income Tax Rate Database Table here. Below are figures from Tax Years 2021 and 2022 for the most common municipalities we deal with. Feel free to call with any questions, or if you do not see your tax rate included.

Contact Ken Weinberg by filling out this contact us form or by calling 440-777-2207, to review your potential tax reduction strategies and tax refunds.

 

Municipal FIPS Code Municipality Income Tax Rate
1000 AKRON 2.50%
1420 ALLIANCE 2.00%
1798 AMHERST 1.50%
3352 AVON 1.75%
3464 AVON LAKE 1.50%
3828 BARBERTON 2.25%
4416 BAY VILLAGE 1.50%
4500 BEACHWOOD 2.00%
4878 BEDFORD 3.00%
4920 BEDFORD HEIGHTS 2.00%
5550 BENTLEYVILLE 1.00%
5690 BEREA 2.00%
6278 BEXLEY 2.50%
7594 BOLIVAR 1.00%
7790 BOSTON HEIGHTS 2.00%
8336 BRATENAHL 2.00%
8364 BRECKSVILLE 2.00%
9064 BROADVIEW HEIGHTS 2.00%
9288 BROOK PARK 2.00%
9246 BROOKLYN 2.50%
9274 BROOKLYN HEIGHTS 2.50%
9680 BRUNSWICK 2.00%
10436 BURTON 1.00%
11304 CANAL FULTON 2.00%
12000 CANTON 2.50%
12168 CARLISLE 1.50%
13358 CHAGRIN FALLS 1.85%
13554 CHARDON 2.00%
Municipal FIPS Code Municipality Income Tax Rate
14114 CHESTERVILLE 1.00%
16000 CLEVELAND 2.50%
16014 CLEVELAND HEIGHTS 2.25%
19778 CUYAHOGA FALLS 2.00%
19806 CUYAHOGA HEIGHTS 2.50%
23324 EAST CANTON 1.50%
23380 EAST CLEVELAND 2.00%
23618 EASTLAKE 2.00%
24234 EATON 1.50%
25704 EUCLID 2.85%
26166 FAIRLAWN 2.00%
26306 FAIRPORT HARBOR 2.00%
26446 FAIRVIEW PARK 2.00%
29428 GARFIELD HEIGHTS 2.00%
29498 GATES MILLS 1.00%
29610 GENEVA 1.50%
29652 GENEVA-ON-THE-LAKE 1.50%
30632 GLENWILLOW 2.00%
35252 HIGHLAND HEIGHTS 2.00%
35255 HIGHLAND HILLS 2.50%
37240 INDEPENDENCE 2.00%
39872 KENT 2.25%
41230 LAGRANGE 1.50%
41664 LAKEWOOD 1.50%
43918 LINNDALE 2.00%
44856 LORAIN 2.50%
45094 LOUISVILLE 2.00%
Municipal FIPS Code Municipality Income Tax Rate
45556 LYNDHURST 2.00%
45976 MACEDONIA 2.50%
47138 MANSFIELD 2.00%
47180 MANTUA 1.50%
47306 MAPLE HEIGHTS 2.50%
48244 MASSILLON 2.00%
48468 MAYFIELD 2.00%
48482 MAYFIELD HEIGHTS 1.50%
48790 MEDINA 1.25%
49056 MENTOR 2.00%
49098 MENTOR-ON-THE-LAKE 2.00%
49644 MIDDLEBURG HEIGHTS 2.00%
50372 MILLERSBURG 1.50%
53312 MUNROE FALLS 2.25%
56882 NORTH OLMSTED 2.00%
56966 NORTH RIDGEVILLE 1.00%
57008 NORTH ROYALTON 2.00%
56448 NORTHFIELD 2.00%
57834 OBERLIN 2.50%
58422 OLMSTED FALLS 1.50%
61000 PARMA 2.50%
61028 PARMA HEIGHTS 3.00%
61686 PEPPER PIKE 1.00%
64150 PORT CLINTON 1.50%
65592 RAVENNA 2.50%
66152 REMINDERVILLE 1.50%
66530 RICHFIELD 2.00%
66894 RICHMOND HEIGHTS 2.25%
Municipal FIPS Code Municipality Income Tax Rate
68056 ROCKY RIVER 2.00%
70380 SANDUSKY 1.25%
71416 SEVEN HILLS 2.50%
71682 SHAKER HEIGHTS 2.25%
72060 SHEFFIELD 2.00%
72088 SHEFFIELD LAKE 2.00%
73040 SOUTH AMHERST 1.00%
73264 SOUTH EUCLID 2.00%
74944 STOW 2.00%
75014 STREETSBORO 2.00%
75098 STRONGSVILLE 2.00%
76106 TALLMADGE 2.25%
78050 TWINSBURG 2.00%
78932 UNIVERSITY HEIGHTS 2.50%
79044 UPPER SANDUSKY 1.00%
79268 VALLEY VIEW 2.00%
79716 VERMILION 1.50%
80304 WADSWORTH 1.40%
80738 WALTON HILLS 2.50%
80892 WARREN 2.50%
80990 WARRENSVILLE HEIGHTS 2.60%
83818 WEST MANSFIELD 1.00%
83622 WESTLAKE 1.50%
85036 WICKLIFFE 2.00%
85484 WILLOUGHBY 2.00%
85512 WILLOUGHBY HILLS 2.00%
85638 WILLOWICK 2.00%
86394 WOODMERE 2.50%