Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

How is the interest penalty generally calculated?

If interest penalty is owed, the taxpayer is required to complete an IT/SD 2210. To calculate the interest penalty, the taxpayer must first determine the quarterly required installment which is 25% of either:

 

  • 100% of the prior year’s total Ohio tax liability -or-
  • 90% of the current year’s total Ohio tax liability

 

Each quarterly required installment is reduced by any timely payments made within each quarter. After subtracting these timely payments, interest, based on the number of days the liability is past due, is charged on any remainder. The total amount calculated from each quarter is then added together, the result of which would be the taxpayers' interest penalty for underpaying their 2017 tax liability.

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