Ohio Department of Taxation News Releases

News Release

April 3, 2006 - Electronic Tax Filings Up Again; Savings Too

COLUMBUS, Ohio - – With the April 17th filing deadline near, Ohio Tax Commissioner William W. Wilkins is urging taxpayers who have not yet filed their state income tax return to follow the increasingly large crowd and file electronically. Paperless returns are up by more than 100,000 compared to last year and Wilkins thinks the upward trend will continue.

“Clearly a growing number of taxpayers are recognizing the advantages of filing paperless. It’s encouraging to see so many converts to electronic filing because it demonstrates that taxpayers support our efforts to develop systems that make life easier. Electronic filing provides multiple benefits for them and it cuts our costs considerably.” Wilkins says it takes about $3 to process a paper return compared to only $1.15 for an electronic one.

The benefits of filing electronically include eliminating mathematical errors and quick delivery of refunds, generally within a week to 10 days after filing. An added benefit for those who owe additional tax is the option of postdating payments – taxpayers filing today can schedule payment at any later date up until April 17.

Through March 29, electronic returns totaled 2,776,168 compared to 2,673,884 for the same date in 2005. Paperless filings of school district income taxes are up as well.

Last year, and for the first time, more than half of the 5.4 million Ohio income taxpayers filed their return electronically. The cost of processing the electronic returns was approximately $3.4 million, compared to more than $8.8 million spent on processing paper returns.    

Other taxpayer need-to-know points about the 2005 Ohio income tax filing season are:

             

AT THE ODT WEB SITE :   tax.ohio.gov

• Answers to most state income tax questions.
• Access to Ohio I-File, ODT’s free online filing system.
• Taxpayers can E-mail Us tax questions – check in the “Contact Us” area.

ALSO THIS YEAR:

• Live assistance is available toll-free at 1-800-282-1780, from 8 a.m.-7 p.m. Mon.-Fri.
• Tax rates were cut 4.2 percent, the first of five annual cuts totaling 21 percent.
• Taxpayers with a taxable income of $10,000 or less owe no income tax (but are still required to file).
• The personal and dependent income tax exemption is increased to $1,350.
• The deduction for funds deposited in an Ohio Medical Savings Account is increased to $3,731.
• Taxpayers due a refund can contribute all or part of it to the Military Injury Relief Fund to provide grants for members of the military injured while participating in Operation Iraqi Freedom or Operation Enduring Freedom. Direct contributions are also welcome. Mail checks to: Ohio Treasurer of State, Ohio Department of Job and Family Services, Military Injury Relief Fund, P.O. Box 182367, Columbus, OH 43218-2367.

                                                                 

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For more information, contact Gary Gudmundson, ODT Communications Director, at (614)644-6903.