Individual Income Tax

Estimated Payments

Do I have to pay estimated tax in 2015?

Estimated tax is a method used to pay tax on income when your withholding and credits do not cover your tax liability. You have to make estimated Ohio income tax payments for year 2015 only if the sum of (i) your year 2014 overpayment credited to year 2015 and (ii) your year 2015 Ohio income tax withholding is not equal to or greater than either of the following:

  • 100% of the year 2014 Ohio income tax OR
  • 90% of the year 2015 tax.

For purposes of these tests, you must reduce your year 2014 overpayment credited to year 2015 by any year 2014 tax payment that you made after April 15, 2015.

If you don't meet either of the tests above, you must timely pay enough estimated Ohio income tax so that the sum of (i) your year 2014 overpayment credited to year 2015, (ii) your year 2015 withholdings and (iii) your timely made estimated Ohio income tax payments is not less than either of the two tests above.

Common examples of income sources that make quarterly estimated payments necessary are self-employment income, pensions, commissions, lump sum payments, capital gains, dividends, interest, alimony received or other sources of income not subject to withholding.

If you are required to make estimated payments and do not, you may be subject to an interest penalty on your underpayment of estimated taxes.

If you estimate that you will owe more than $500 in tax for 2015 (after subtracting your estimated withholding and credits), then you should make quarterly estimated payments either on Ohio form IT 1040ES or by filing and paying electronically.

To assist taxpayers in determining their estimated payments, a complete set of tax rates through 2014 is available on this Web site.

CAUTION: If you are required to make estimated payments and do not, you may be subject to an interest penalty on your underpayment of estimated taxes. Use Ohio form IT 2210, long and short method, to calculate the interest penalty on your underpayment amount.

2015 Payment Due Dates:
1st Quarter -  April  15, 2015
2nd Quarter - June 15, 2015
3rd Quarter -  Sept. 15, 2015
4th Quarter -  Jan. 15, 2016

TIP: If you don't want to make estimated payments, you may increase the amount of Ohio tax your employer withholds from your wages. To do this, file with your employer a revised Ohio form IT 4 (Employer Withholding Exemption Certificate).