Every filing season brings with it some new wrinkles to Ohio's tax code. This year is no different.

Below is a list of major changes to keep an eye out for when filing tax returns for the 2007 taxable year. We've also included tips designed to help this filing season go more smoothly for taxpayers.

Remember, the deadline to file a return is April 15, 2008.

NEW FOR THE 2007 FILING SEASON

• Lower tax rates: The 2007 tax tables include a 4.2 percent cut across all income tax brackets when compared to the previous tax year. The rate cuts mark the third year of a five-year plan to reduce state income tax rates by 21 percent across all brackets.
• New military tax exemption: Servicemen and women who received pay while stationed outside Ohio may now deduct this military pay in arriving at their Ohio adjusted gross income. The deduction starts with the 2007 taxable year. For details, see Frequently Asked Questions - Military Question #1.
• More ways than ever to file electronically: New for 2008, the Ohio Department of Taxation has introduced eForms, yet another way to for taxpayers to file returns electronically and get refunds fast. Through eForms, the department offers Adobe Acrobat versions of all major state and school income tax forms that taxpayers may complete online, much as they would on paper. eForms will even do most of the math – and it's free. To see how eForms stacks up against other filing options, click here.
• A new look for refund checks: Get the details here.
• Larger personal exemption: The personal and dependent income tax exemption increased to $1,450 for the 2007 taxable year, up from $1,400 for 2006.
• Residency changes: The time period to establish Ohio domicile for part-year residents has increased; who and who is not an Ohio resident for tax purposes is explained here.
• Larger medical savings account deduction: This deduction permitted for funds deposited into an Ohio Medical Savings Account increased to $3,944 for the 2007 taxable year, up from $3,850 in 2006.
• Tax preparer contact: Taxpayers can now authorize their tax preparer to contact the department to resolve issues regarding their return. If you want your tax preparer to be able to talk to us, list your preparer's name in the space provided below your signature on the return and check the box indicated below his/her name to allow us to discuss your return.
• Municipal income tax: Some municipalities have different tax rates for 2007; look up yours here.
• School district income tax: Does your school district have a tax? Is it based on Ohio adjusted gross income or earned income? See what applies in your district here.

TAXPAYER TIPS FOR 2007

• File electronically. Why wait weeks for an income tax refund when you can have it in days? Now there are more ways than ever to cut to the front of the line and get your refund fast.
• Direct deposit ensures a faster refund. If you file electronically and elect to have your refund deposited directly into your bank account, you can generally expect to receive it within five to seven business days. But be sure to verify your routing and accounting number with your financial institution before you submit your return.
• Don't forget about local taxes. Many cities and villages, as well as an increasing number of school districts, levy an income tax. If you're unsure of your municipality or school district, look up your address in The Finder.
• Know the tax year. Income tax returns due by April 15, 2008 cover the 2007 taxable year. This means some tax changes you may have read about or seen on the news may not apply to this filing season. For example, while military pensions were exempted from the state income tax effective Jan. 1, 2008, this change doesn't affect the current filing season.
• Make sure we have your correct address. If you use a tax preparer to file your return electronically, make sure that your current address is on file with the preparer. If you have moved since last year's filing, your preparer may need to update your mailing address with us. Otherwise, your refund may be returned to us as "undeliverable."

• Be complete. When mailing a return, you must include W-2s and – if applicable – the schedules used to calculate deductions, additions and credits. If you owe, don't forget to include the IT 40 payment voucher and check - and include the last four digits of your social security number, as well as the tax year, on your check. If you're mailing a paper return, be sure to sign it and enclose all four pages.

• Check your math. Math errors slow down the processing of refunds. Also, remember that the federal adjusted gross income listed on your federal tax return must match the federal adjusted gross income listed on your state tax return(s).
• Keep good records. It's best to retain copies of your tax forms and associated paperwork for four years to help settle any discrepancies.
• Do you have to file? Some senior citizens on fixed incomes and taxpayers whose personal and dependent exemptions exceed their taxable income may not have to file a state income tax return. See "Generally, you do not have to file..." on our Who Must File page.
• Low income tax credit. Any Ohio resident whose income is $10,000 or less is allowed a credit equal to the amount of tax they would owe, which means they will not have to pay any tax. Eligible taxpayers must file in order to take the credit, which is on line 53 of Schedule B of the Ohio IT 1040.
• Earned income tax credit. Working individuals and families who earn modest incomes may be eligible for the earned income credit on their federal returns, which could result in a refund that these taxpayers might otherwise receive. To find out the eligility rules and how the credit works, see the EITC information page on the IRS Web site.