News Releases

News Release

January 30, 2006 - Tax Filing Delivers Income Tax Cuts to Ohio Taxpayers - Savings on 2005 income taxes estimated at $340 million

COLUMBUS, Ohio - – Every Ohio income tax filer will find their tax rates cut 4.2% this filing season and Tax Commissioner William W. Wilkins says the quickest way to take advantage of that tax cut is to file electronically.

“Everyone who files this year should benefit from the cut, “Wilkins said. “Those with refunds, who file online or use TeleFile, and choose direct deposit, can expect the refund back in 5-to-7 business days.”

Wilkins says people who owe tax can file early and choose to pay at a later date, (anytime through April 17th) when they file electronically. The filing deadline this year is April 17th because the traditional April 15th deadline falls on a weekend. 

This year’s tax cut is the first of five scheduled as part of a cut totaling 21% or nearly $2.2 billion annually when fully phased in five years. Taxpayers with taxable income of $10,000 or less will pay no tax.  The cut, and many other major tax reform initiatives, was part of the most recent state budget bill passed by the Ohio General Assembly and signed by Governor Bob Taft last summer.

In addition to those tax cuts, certain taxpayers who are delinquent in their taxes, can realize another break offered by the Ohio Tax Amnesty program that runs through Feb. 15. Taxpayers who voluntarily report and pay delinquent tax, avoid penalty and pay only half the normal interest due. More information on tax amnesty can be found on the Ohio Department of Taxation (ODT) web site at tax.ohio.gov or by calling 1-888-405-4039.

             

In addition to those real and potential tax breaks, individual income tax filers this year will see other changes including:

  • an increase of $50 to $1,350 in the personal and dependent exemption
  • an increase of $88 to $3,731 in the deduction for deposits to Ohio Medical Savings Accounts
  • a new fund accepting donations from tax refunds. The Military Injury Relief Fund will provide grants to members of the military injured while participating in Operation Iraqi Freedom or Operation Enduring Freedom.            

Wilkins says taxpayers who file electronically using Ohio I-File (it’s free), TeleFile, a tax preparer, or commercially available software help hold down everyone’s cost. “It costs us about $1.15 to process an electronic return compared to $3 to process a paper one," Wilkins said. “When the tax department saves money, taxpayers do, too."

                         

Taxpayers who pay school district income tax can also file that tax return online this year using Ohio I-File.

             

Taxpayers with questions or otherwise needing assistance are encouraged to visit the ODT web site (tax.ohio.gov) for information, answers to Frequently Asked Questions, or to e-mail questions to taxpayer service agents.  Taxpayers can also call 1-800-282-1780 (toll-free) for assistance. Beginning Monday, January 30th telephone assistance will be available for extended hours from 8 a.m. to 7 p.m. Monday through Friday.

                   

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(For more information contact Gary Gudmundson, Communications Director, Ohio Department of Taxation at (614) 644-6903.)