Information Release

IT 2005-01 Personal Income Tax Division, August, 2005

Trusts: Estimated Income Tax Payment Due September 15, 2005

Any trust that continues or is now subject to the Ohio income tax as a result of the recent passage of Am. Sub. House Bill 66 (the budget bill) need not make any taxable year 2005 estimated quarterly income tax payments until the third quarter payment is due, September 15, 2005.

Any and all taxable year 2005 estimated quarterly payments that would have otherwise been due prior to September 15th 2005 are now not due until September 15, 2005.  In general, this requires that 67.5% of the tax liability be paid prior to September 15th 2005. Please click here for the estimated payment form and worksheet.

The law requires trusts residing in whole or in part in Ohio or earning or receiving income in Ohio to continue to pay Ohio income tax on undistributed (retained) income.  The basis of the tax is federal taxable income with various adjustments as specified in the Ohio Revised Code (R.C.) section 5747.01(S) as amended. The trust-related provisions of this bill include amendments to R.C. 5747.01 and 5747.02.  R.C. section 5747.09(C) requires trusts with annual tax exceeding $500 to make estimated quarterly income tax payments.

If you have any questions regarding this matter, please contact the Department’s Pass-Through Entity Tax section at 614-438-5317 (after September 15, 2005 at 614-387-0234) or e-mail your questions to us via our home page at tax.ohio.gov .