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June 6, 2014 • 2 min read
The Ohio Board of Tax Appeals (“BTA”) has provided quite an informative decision addressing residency stressing the importance of filing the required affidavit (Form IT DA) if claiming to be a non-resident under the bright-line test set forth in R.C. 5747.24. See Cunningham v. Testa, Ohio BTA Case No. 2011-4641 (March 6, 2014). As a foundation, the bright-line test provides that an individual having less than 183 “contact periods” is presumed to not be domiciled in Ohio, if the individual timely files an affidavit for the year stating that for the entire year:
The presumption is irrebuttable unless the affidavit is false. In this case, both the husband and wife met the contact period requirement (i.e., both had less than 183 contact periods) and maintained a Tennessee home the entire year. However, only the husband filed the affidavit.
The BTA addressed two core issues:
As a side note, the BTA stated that the taxpayers’ Homestead Exemption Application which stated that they occupied an abode in Cincinnati as their principal place of residence was neither relevant nor inconsistent with their non-Ohio domicile status since it was clear they spent more time at their Ohio residence than in the Tennessee residence.
This case highlights two important aspects of Ohio’s bright-line residency test – first, each taxpayer must file the affidavit to rely upon the irrebutable presumption that they were a non-Ohio resident; and, second, a husband and wife are not necessarily residents of the same state for tax purposes.
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