The Ohio Department of Taxation, along with the IRS, will begin accepting 2019 income tax returns on Monday, January 27th. It is also the first day to file Ohio school district income tax returns.
Ohio Tax Commissioner Jeff McClain says there is some good news this year, “Income tax season may not be everyone’s favorite, but this year Ohioans will benefit from a 4% reduction in the income tax rates. I’m pleased also that Ohio has further reduced the tax burden on its low- to moderate-income residents.”
McClain says the state has cut the number of tax brackets from 8 to 6 by combining the bottom three brackets. This means Ohioans making $21,750 or less, will pay no state income tax.
In addition, he says lower income Ohioans will benefit from a simplified and expanded earned income tax credit. Qualified taxpayers will now be able to claim a credit that equals 30% of their federal earned income credit. Ohio’s previous credit was 10%.
Other changes this year will impact Ohioans claiming the Ohio Business Income Deduction (BID). Ohio now uses a concept called ‘modified adjusted gross income’ that will require taxpayers to add back the deduction to their Ohio adjusted gross income. The modified adjusted gross income will be used to determine eligibility for several different credits and exemptions and how to calculate school district income tax for those living in an earned income school district tax base; traditional tax base remains unchanged. The Ohio individual and school district income tax booklet has detailed instructions regarding this change.
The Department of Taxation continues to focus on protecting the security of Ohioan’s income tax returns and the state treasury. While the incidence of tax fraud has declined in recent years, the department will again employ the I.D. Quiz to prevent criminals from stealing your tax dollars by filing illegitimate tax returns using stolen personal information.
Commissioner McClain is urging everyone to file their returns electronically. If you are entitled to a tax refund, you can expect to receive it within 15 business days if you file electronically and request direct deposit. If you file a paper return, it could take up to 10 weeks to receive your refund.
If you have additional questions or need assistance with your Ohio return, please visit tax.ohio.gov or call 1-800-282-1780 for taxpayer assistance. The income tax season will end April 15th.