Individual Income Tax

What's New in 2017

Ohio Income Tax Tables. Beginning with tax year 2017, Ohio's individual income tax brackets have been adjusted so that taxpayers with incomes of $10,650 or less are not subject to income tax. Also, the tax brackets have been indexed for inflation per Ohio Revised Code section 5747.02(A)(5).

Low Income Credit. Due to the changes to the income tax brackets, the Low Income Credit line is no longer needed and has been removed from the Ohio Schedule of Credits.

Direct Deposit Changes. Taxpayers may no longer split their direct deposit refund into multiple accounts. Taxpayers still have the option to direct deposit their refund into an IRA, checking/ savings account or an Ohio 529 plan account. However, the entire refund must be deposited into a single account.

Business Income Deduction. For tax year 2017, the business income deduction on Ohio Schedule A of the Ohio IT 1040 income tax return will remain at 100% of the first $250,000 of net business income for single or married filing jointly returns and $125,000 for married filing separate returns. A flat tax rate of 3% will be applied to business income exceeding the maximum business income deduction amounts, continuing to free up additional funds for private sector job creators to further invest in growing their businesses.

Ohio IT K-1. Use the Ohio IT K-1 to report each investor's or beneficiary's proportionate or distributive share of the partnership's, corporations, estate's or trust's Ohio income and credits. Each entity with Ohio income should prepare a separate Ohio K-1 for each investor or qualifying beneficiary to enclose with the investor's or beneficiary's IT 1040. The form can be found on our website at tax.ohio.gov.

Tax Forms. Beginning with the 2015 filing year, the Ohio IT 1040, IT 1040EZ and IT 1040X forms were consolidated into one form, the Ohio IT 1040. Likewise, the Ohio SD 100 and SD 100X forms were consolidated into one form, the Ohio SD 100. To amend the return, taxpayers can simply mark the amended return checkbox on page 1.

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

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

For more information on these services, as well as information on your electronic filing and payment options, go to our website at tax.ohio.gov.

Refund Information. Most taxpayers who file their returns electronically and request direct deposit will receive their refunds in approximately 15 business days. Paper returns will take approximately 8 to 10 weeks to process.

OPPORTUNITY ALERT!! OHIO’S TAX AMNESTY PROGRAM
January 1 – February 15, 2018
If you have an unpaid Ohio Tax debt, and haven't been billed or contacted by the Ohio Department of Taxation to pay that delinquent tax, there may be no better time than now to settle that obligation.

The State of Ohio is offering a limited-time, Tax Amnesty program that runs only from January 1, 2018 through February 15, 2018. This program gives taxpayers an opportunity to get rid of a tax debt at potentially much lower cost than usual, and avoid further legal consequences.

Taxpayers who pay the amount owed in full – during the amnesty period -- will pay no penalty and only half of the interest that would normally be applied to delinquent taxes. The offer applies to the following taxes that were due and payable prior to May 1, 2017:

  1. Individual Income
  2. School District Income
  3. Commercial Activity
  4. Employer Withholding
  5. Employer Withholding School District Income
  1. Financial Institutions
  2. Pass-Through Entity
  3. Sales & Use (state & local)
  4. Alcoholic Beverage, Cigarette or Other Tobacco Products (state & local)

Examples of Savings with Tax Amnesty

Tax

Amount Owed*

Penalty

Interest
(3 yrs.)

Total

Amnesty Total/Savings

Sales

$20,000

$9,700

$1,911

$31,611

$20,955/$10,656

Individual Income

$2,000

$500

$164

$2,664

$2,082/$582



*From 2014 Tax Year
For information on how to apply for Tax Amnesty, please visit OhioTaxAmnesty.gov or consult with a tax advisor.