IT 2006-01 – Individual Income and School District Income
Taxes: Estimated Payment Allocation Process Revised Beginning
April 1, 2006 – Issued March, 2006
The purpose of this information release is to advise
taxpayers that the Ohio Department of Taxation (ODT) has
modified the process it uses for reconciliation of estimated
payments for Ohio’s individual income tax and school district
income tax returns. The new estimated payments allocation
process is effective April 1, 2006.
In the past, joint estimated payment vouchers were split
evenly (50/50) between both spouses. In general, this process
was sufficient for those taxpayers who filed their return
utilizing the “married filing jointly” status. However, this
process also caused some erroneous billing letters for some
“married filing separately” status taxpayers when the
reconciliation of the estimated payments between the spouses
did not reflect the 50/50 payment allocation.
As a result of feedback from several taxpayers and tax
practitioners, ODT modified the allocation process. The new
process is explained below.
Tax returns filed utilizing the “married filing jointly” and
“single” filing status will continue to apply estimated
payments matching the primary social security number on the
tax return and the estimated payment vouchers. ODT’s system
will also apply the estimated payments properly on a “married
filing jointly” return even if the social security numbers
are inverted on the estimated voucher(s) versus the tax
To address married taxpayers who remitted joint estimate
payment vouchers but subsequently filed their tax returns
utilizing the “married filing separately” status, ODT will
apply the previous year credit carry forward and estimated
payments to the first return posted through the department’s
computer system. Routinely, a taxpayer counts on the previous
year credit carry forward as the first quarter estimated
payment for the subsequent tax year. Because of this
assumption, the previous year credit carry forward will
always be the first payment applied to the first return
processed through the ODT system. This process will continue
with available estimated payments up to the amount requested
on the estimated payment line of the first return posted to
If there are funds remaining that were not used to satisfy
the amount requested on the estimated payment line of the
first IT-1040 or the SD-100 return to pass through the ODT
system, any remaining amounts will be credited against the
second spouse’s “married filing separately” return when it
posts to the system.
Please note that payment vouchers received with only one
taxpayer’s name and social security number will only be
applied to the tax return that matches the payment voucher.
This policy/procedure will apply if the taxpayer files a
“single,” “married filing separately” or “married
filing jointly” return.
Taxpayers are reminded that Ohio law still requires a
taxpayer’s Ohio filing status to match the filing status on
the taxpayer's federal income tax return.
Returns transmitted electronically will also apply estimated
payments based upon the first return processed through the
ODT system. In the event both spouses’ returns are
transmitted on the same date, ODT’s receipt time stamp will
be used to identify the tax return that posted first. If
identical, the spouse with the lowest social security number
will be deemed to be the first return
For any questions regarding this matter, please contact the
Taxpayer Services Division at 800-282-1780 or e-mail
questions to ODT via the department’s home page at tax.ohio.gov.