Individual Income Tax

What's New for 2013

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 2013:

Income Tax Online Services. Create a user name and password through our secure site so that you may:

  • Electronically view outstanding tax liabilities and returns on file with the Ohio Department of Taxation.
  • Electronically file tax returns and/or view them in pending status.

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.

  • Ohio Income Tax Rate Reductions. HB 59 reduces income tax rates by 8.5% in taxable year 2013, .5% to total 9% in taxable year 2014 and 1% to total 10% in taxable year 2015 (see Ohio Revised Code section 5747.02). 
  • Personal Exemptions. The personal and dependent income tax exemption of $1700 will be the same for taxable year 2013, 2014 and 2015 as the income tax reduction rates are phased in.
  • Personal Exemption Credit. The $20 personal exemption credit is now income-based.
  • Adoption Credit. The credit for adopting a child is now found on line 15 of Ohio form IT 1040.  
  • Refundable Credits. The refundable credits previously found on lines 21a-d of the 2012 Ohio form IT 1040 (e.g. historic preservation, motion picture credit) have moved to lines 72a-e.  

  • Earned Income Credit. Taxpayers who qualify for the federal earned income tax credit (FEIC) may take an Ohio earned income credit equal to 5% of the taxpayer's FEIC with limitations.

  • Small Business Investor Income Deduction. This allows an individual to deduct 50% of the taxpayer's small business income up to $250,000.

  • Small Business Investor Income Deduction Add-Back for School Districts. The small business deduction described above will not affect the calculation of a taxpayer's school district income tax liability.

  • InvestOhio Credit. This provides a nonrefundable personal income tax credit to investors that infuse new equity (cash) into Ohio small businessesto acquire an ownership interest in the company. See Schedule E instructions on tax.ohio.gov

  • Financial Institutions Tax (FIT) Refundable Credit. This provides a refundable income tax credit for an individual's proportionate share of FIT payments made on behalf of them by a pass-through interest in a financial institution. 
  • Technological Investment Credit. This credit on Schedule E of the Ohio form IT 1040 has expired, but will continue to be included as a credit for those taxpayers previously issued a certificate as it has a carryforward period of 15 years. See Schedule E instructions on tax.ohio.gov 
  • IT S Schedule. This schedule is required for same-gender taxpayers filing a jointn federal tax return to singly report their federal AGI on their Ohio form IT 1040.

More information on these changes as well as complete instructions for filing an income tax return are available in the 2013 Ohio Income Tax publication.