Tax Information

Introduction

As the university's tax office, the Payroll Services provides you with employer tax statements like the W-2, and can help you adjust your exemptions via Form W-4. The Tax Office does not provide tax advising or consultation services. We recommend you contact your tax advisor or the Internal Revenue Service (IRS), 1-800-829-1040 for specific information and advice.

If you are not a U.S. citizen, refer to our Nonresident Aliens page.

City of Columbus Tax Increase Information

Effective Oct. 1 the City of Columbus implemented a 0.5% income tax increase. The increase reflects the passage of Issue 1 on the Aug. 4, 2009 ballot. This change was implemented on the following pay dates:

• Biweekly paid: Oct. 23, 2009
• Monthly paid: Oct. 30, 2009

The tax rate increase impacts all individuals residing in as well as those working in the City of Columbus.

Columbus will continue to give full credit to residents for local tax paid to another tax jurisdiction. If the tax rate of the jurisdiction where a Columbus resident works is less than 2.5%, then the resident will owe additional tax to the City of Columbus so as to result in a total local tax paid of 2.5%.

Additional information on the tax increase can be found at www.columbustax.net.

Form W-2: Wage & Tax Statement

Ohio State is required to furnish all employees with a Form W-2 showing their compensation and tax withholding amounts for the calendar year by January 31 of the following year. You will use the W-2 to complete your yearly tax return by April 15.

We encourage you to check your W-2 Online but if you choose not to your W-2 will be mailed to you.

Form W-4: Employee's Withholding Allowance Certificate

All Ohio State employees are required to complete a Form W-4 when they are hired. You will also need to review your Form W-4 and make appropriate changes if you have had a major life change, such as marriage or divorce, death of a spouse, or birth/adoption of a child.

For more information, see Withholding: About Your W-4 below or try the IRS Withholding Calculator.

Information about the Making Work Pay Credit and how it impacts your W-4 is available here.

Completed Form W-4’s should be submitted to Payroll Services for processing.

Withholding: About Your W-4

Withholding is the amount of taxes that are taken from your paycheck based on factors such as whether or not you are married, have children, or have multiple jobs. It makes sense to take a few minutes to make sure that what is being withheld from your paycheck matches your actual tax liability. If you're having too much tax withheld, that's money you can't use until you get your refund. If you're not having enough withheld, you will owe tax at the end of the year, and you may even have to pay a penalty. Generally, a penalty will apply if your withholding and estimated tax payments total less than 90 percent of your current year's tax liability and less than 100 percent of the previous year's tax.

Information about the Making Work Pay Credit and how it impacts your W-4 is available here.

Reasons to Recheck Your W-4

You should pay particular attention to your withholding if you received a big refund check this year or if you had to make a tax payment that was more than you could comfortably pay. Also check your withholding if you had a significant change in your life this year, like marriage, divorce, birth or adoption of a child, purchase or sale of a home, or retirement. There is a good chance you're not having enough withheld if you have more than one job, if your spouse works, if you have income not subject to withholding, such as rent, dividends, interest or capital gains, or if you owe other taxes like self-employment or household employment taxes.

How to Find Out if You Are Withholding Enough

Need help in figuring out whether you are withholding enough? You can review How Do I Adjust My Tax Withholding? (IRS Publication 919). You can also use the IRS Withholding Calculator. With the help of current pay stubs and a copy of last year's tax form, you can check to see if you are withholding the right amount, then use the calculator results to fill out a new Form W-4.

How to Adjust the Amount of Withholding

You can adjust the amount being withheld from your paycheck by submitting a new Form W-4 to Payroll Services.

Tax on Graduate Tuition Assistance

The first $5,250 in tuition assistance that the university provides to faculty and staff each year for graduate-level courses is not subject to taxation.

The Economic Growth and Tax Relief Reconciliation Act of 2001 repealed the limitation on employer-provided graduate education and extended the educational assistance exclusion under IRC §127 through December 31, 2010.

Please note that tuition assistance for dependents, including spouse or dependent children, who are taking graduate-level courses, is subject to taxation. The full tuition benefit provided to same-sex domestic partners and their dependent children is subject to taxation.