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 do I calculate my Ohio interest penalty?

Part II of form IT/SD 2210 is used to calculate the interest penalty. Ohio also provides a fill-in worksheet to assist in the calculation of the interest penalty.

To calculate the interest penalty, the taxpayer first determines their quarterly “required installment” which is one quarter (or 25%) of either:

  • 90% of the current year’s total Ohio tax liability; OR
  • 100% of their prior year’s total Ohio tax liability.

Each quarterly required installment is reduced by any timely payments made within each quarter. The balance is subject to interest from the payment’s due date until the later of when the installment is paid or the return is due. The total amount calculated from each quarter is then added together, the result of which would be the taxpayers' interest penalty for underpaying their current year tax liability.

See R.C. 5747.09(A) and (E).

Example: Joe Taxpayer’s current year IT 1040 reflects a total Ohio tax liability (IT 1040, line 10 minus line 16) of $2,000. He also has $1,000 in employer withholding on his W2.  He does not have any credit carryforward or refundable credits.  Last year, Joe's total Ohio tax liability was $1,500. Click here to see how Joe completes his IT/SD 2210.

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