Individual Income Tax

Form IT 1040 Individual Income Tax Return 

Form IT 1040X Ohio Amended Individual Income Tax Return 

Form IT 1040EZ Individual Income Tax Return for Full-Year Ohio Residents 

Corporate Income Tax

Form FT REF Application for Corporation Franchise Tax Refund

Ohio Income Tax Forms: A Comprehensive Guide

Paying taxes is not a fun task, but it’s a necessary one for every American. Ohio state residents are no exception. They have to pay state income taxes to the Ohio Department of Taxation every year. The Ohio income tax system comprises various forms, rates, and deadlines that can be confusing and daunting for taxpayers. This article aims to give a detailed guide to fill out Ohio income tax forms, including changes to the forms and tax rates that Ohio taxpayers should know.

What are Ohio Income Tax Forms?

Ohio income tax forms are documents that taxpayers in Ohio need to fill out and submit to the Ohio Department of Taxation to determine their state income tax liability. The Ohio income tax applies to most types of income, except for Social Security benefits, inheritance, and gifts. These income types are exempted from state income tax. To file an Ohio income tax return, you need to use the prescribed Ohio income tax form that matches your filing status, income level, and deductions. Ohio income tax forms include:

– IT-1040: Ohio Individual Income Tax Return
– IT 1040EZ: Ohio Easy Income Tax Return
– IT 1040X: Ohio Amended Individual Income Tax Return
– IT 40P: Ohio Income Tax Payment
– IT 10: Ohio Tax Table

Understanding Ohio Income Tax Forms Types

Ohio individual income tax forms are classified into four types.

1. IT-1040 Ohio Individual Income Tax Return
The IT-1040 form is the standard Ohio income tax form. It’s tailored for taxpayers with more complex income tax scenarios, such as dependents, itemized deductions, and different tax credits. You can use the IT-1040 form if your taxable income is more than $22,150 or you earned income from self-employment. The form has various schedules that should be attached to it, depending on your income type and other factors. These schedules include:

– Schedule A: Itemized Deductions
– Schedule B: Nonrefundable Business Credits
– Schedule C: Pass Through Entity and Trust Withholding
– Schedule D: Schedules of Credits
– Schedule E: Additional Adjustments
– Schedule J: Lump Sum Distribution Averaging

2. IT 1040EZ Ohio Easy Income Tax Return
The IT 1040EZ is the simplified Ohio income tax form that is designed for taxpayers with less complicated incomes and deductions. If your taxable income is below $22,150 and you only have W-2s from your employer as your income source, you can use this form. The IT 1040EZ is faster to complete, and you don’t need to file any additional schedules since it doesn’t offer additional credits or deductions.

3. IT 1040X Ohio Amended Individual Income Tax Return
The IT 1040X form is used to correct any errors that were made in the taxpayer’s original IT 1040 and IT 1040EZ returns. You can file an amended Ohio income tax return within three years from the original date of filing or two years after the date you paid the tax. It’s advisable to seek professional assistance or consult the Ohio Department of Taxation before filing an amended return.

4. IT 40P Ohio Income Tax Payment
The IT 40P form is the payment voucher for Ohio income tax. If you filed your state income tax return electronically or by mailing, you can use the IT 40P voucher to pay the balance due or estimated income tax. The Ohio Department of Taxation accepts online payment or by mailing in a check or money order with the filled-out payment voucher.

How to Fill Out Ohio Income Tax Forms

Filling out Ohio income tax forms can seem challenging, especially if you are doing it for the first time. Here’s a step-by-step guide to help you file your Ohio income tax return correctly.

Step 1: Gathering Your Tax Forms and Documents

The first step to fill out your Ohio income tax return is to collect the necessary forms and documents. You will need your W-2s from your employer, federal income tax return, and other documents that show your Ohio income sources, deductions, and credits. Make sure you have the correct tax forms for your situation, whether it’s the IT-1040, IT- 1040EZ, or any of the three schedules.

Step 2: Filling in Personal Information

The second step is to fill in your personal information, such as your name, address, social security number, and filing status. You will also need to provide the same information for your spouse if you’re filing jointly. If you’re filing a joint return, both you and your spouse must sign the tax return.

Step 3: Calculating Your Income and Deductions

The third step is to calculate your total income and deductions. If you’re using the IT-1040 form, you’ll need to fill out Schedule A with your itemized deductions. If you’re using the IT-1040EZ form, you don’t need to provide any deductions since it has a standard deduction limit. You’ll then use the IT 10 tax table to find out your Ohio state income tax liability.

Step 4: Claiming Tax Credits and Payments

The fourth step is to claim any tax credits and payments. Ohio offers various tax credits, such as the Earned Income Tax Credit, the Child and Dependent Care Credit, and the Nonrefundable Business Credit. You can also claim credits for taxes paid to other state jurisdictions or credit for contributions to Ohio 529 college savings plan. You will need to fill out the applicable tax schedules to file your credits.

Step 5: Double-checking Your Information

The fifth step is to double-check your information before submitting your tax return. Make sure that you have accurately entered your income, deductions, and credits. Check for errors, such as bank account information or social security numbers, that can affect your tax refund or be an audit red flag.

What’s new with Ohio Income Tax Forms?

Ohio state usually updates its forms, instructions, and tax rates every year to reflect any changes to tax laws or regulations. Here are some of the changes that taxpayers should note when filing their Ohio income tax returns for the 2021 tax year.

Ohio Income Tax Rates 2021

Ohio state has a progressive tax system, which means that the higher your taxable income is, the higher the tax rate you’ll pay. Ohio has nine tax brackets with a tax rate ranging from 0.495% to 4.797%.

If Your Ohio Taxable Income Is:Your Tax Liability Is:

$22,151 or less 0.495% of your income

More than $22,151 but less than $44,250 $109.28 plus 1.990% of the excess over $22,150

More than $44,250 but less than $88,450 $412.48 plus 2.85% of the excess over $44,250

More than $88,450 but less than $110,650 $1,925.48 plus 3.326% of the excess over $88,450

More than $110,650 but less than $221,300 $3,704.89 plus 3.802% of the excess over $110,650

More than $221,300 but less than $443,350 $8,237.49 plus 4.413% of the excess over $221,300

More than $443,350 but less than $887,700 $24,942.96 plus 4.797% of the excess over $443,350

More than $887,700 $42,748.87 plus 4.997% of the excess over $887,700

(Source: Ohio Department of Taxation)

Changes to Tax Forms for the 2021 tax year

Ohio form IT-40 has been updated to incorporate pandemic-related tax changes. The changes affect line 4, Ohio withholding from W-2s, line 22, Ohio Schedule A deductions, and the Ohio Pass-Through Entity Withholding Credit on line 27. Also, Ohio form IT-40P, Ohio Income Tax Payment, has seen updates, including more defined payment types and the addition of a nonresident declaration section.

Electronic Filing Discounts for 2021 tax year

Ohio state offers electronic filing discounts to taxpayers who use the Ohio eFile system to file their state income tax returns. The discount is $3 per return for Ohio income tax returns with an adjusted gross income of $22,000 or less and $5 per return for Ohio income tax returns with an adjusted gross income greater than $22,000.

Conclusion

Filing Ohio income tax forms may seem daunting, but it’s a necessary requirement to avoid tax penalties and an IRS audit. It is essential to understand which tax form to use and gather all necessary documents. To ensure a smooth tax season, research Ohio tax laws and utilize government resources. With these tips, Ohio taxpayers can file their taxes confidently and accurately.