What's New for 2012
A number of changes to the Ohio individual income tax took effect this year, and some of them will save taxpayers money. Among the key changes for 2012:
- Income Tax Online Services. Create a user name and password through our secure site for the following self-help services:
Electronically view your 1099-G and/or 1099-INT form(s)
Go paperless with your 1099-G and/or 1099-INT form(s) (confirmed e-mail address required)
Update your profile to include: Address, phone number and e-mail address
For more information on these new services, as well as information on your electronic file and pay options, go to our Web site at tax.ohio.gov.
- HB 508. In June 2012 the governor signed HB 508, which includes the following:
- HB 365. Upon the governor's signature, HB 365 expands the 179/168 add-backs and deductions.
- Expansion of Job Creation and Retention Credit. On June 6, 2012, the governor signed HB 327 expanding the job creation and retention credit to now include home-based employees when calculating the credit. See HB 327 for additional information.
Estimated Payment Vouchers. Taking yet another step to streamline operations and reduce costs, the Ohio Department of Taxation will no longer mail its estimated payment vouchers (Ohio forms IT 1040ES and SD 100ES). Taxpayers may pay their quarterly 2013 Ohio and/or school district estimated income tax by using any of our electronic payment methods. Taxpayers may also go to our Web site at tax.ohio.gov to print copies of our forms.
E-Mail Notification. The Ohio Department of Taxation has created a space on its Ohio form IT 1040 and IT 1040EZ that allows the taxpayer to fill out an e-mail address. Also, through our new Online Services, you are able to provide, update and select "e-mail" as your preferred method of communication with the department for certain notices. No confidential information will be included in e-mail communications.
- Filing Deadline — The deadline for filing your Ohio (and federal/IRS) 2012 income tax return is April 15, 2013.
- Pell Grant and Ohio College Opportunity Grant Deduction — Ohio taxpayers may now be eligible for a deduction of limited taxable grant amounts.
Ohio Income Tax Tables. Ohio's individual income tax brackets have been indexed for inflation per Ohio Revised Code section 5747.025. The income tax brackets reflect a 2.1% reduction compared to taxable year 2011.
- Direct Deposit — Changes to Ohio law permit taxpayers who file an Ohio income tax return electronically to also deposit their refund electronically into any of four different types of pre-existing accounts, including checking accounts, savings accounts, individual retirement accounts or annuities (“IRAs”) and CollegeAdvantage 529 Savings Accounts administered by the Ohio Tuition Trust Authority. Direct deposit options for electronic filing allow taxpayers to split direct deposits into three different accounts.
- Larger personal exemption — The personal and dependent income tax exemption increased to $1,700 for the 2012 taxable year, $50 more than 2011.
Low Income Tax Credit. Taxpayers whose Ohio taxable income is $10,000 or less are entitled to a tax credit that results in a zero tax liability.
More information on these changes as well as complete instructions for filing an income tax return are available in the 2012 Ohio Income Tax publication.