Ohio Income Tax Instruction Booklet
Extracted from PDF file 2022-ohio-income-tax-instructions.pdf, last modified November 2022
Income Tax Instruction Booklet• INSTRUCTIONS ONLY • NO RETURNS • U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E hio 2022 S Instructions for Filing Original and Amended: • Individual Income Tax (IT 1040) • School District Income Tax (SD 100) hio Department of Taxation tax. hio.gov 2 2022 Ohio IT 1040 / SD 100 Table of Contents H A Amended returns..................................... 8 B Business credits...............................21-23 Business income Business income deduction (IT BUS).... 19 Definitions and examples................... 10 I Individual credits...............................20-21 Income statements (W-2, 1099).......38-39 Interest............................................15, 47 IT 1040 Completing the top portion................. 13 General information........................... 11 Line instructions............................14-15 Income tax rates and tables..........31-37 Net operating loss (IT NOL)................... 50 Nonresident credit (IT NRC).............23-26 Nonresident statement (IT NRS)..... 13, 49 P Payment options...................................... 6 R Refund status..........................................2 Residency.............................................. 11 Resident credit (IT RC).......................... 26 Residency credits.................................. 22 Retirement income credit...................... 20 U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E C Highlights for 2022.................................. 5 N College savings (Ohio 529 plan) Instructions........................................18 Worksheet..........................................28 D Deceased taxpayers................................ 7 Direct deposit options.............. Back cover Donations........................................12, 15 E Earned income credit............................ 21 Electronic filing options............ Back cover Estimated tax payments for 2023............ 7 Exemptions............................................14 F Filing extensions................................ 7, 13 Filing requirements.......................... 11, 46 G General information................................. 7 J Joint filing credit..................................... 20 L Lump sum credits Instructions........................................20 Worksheets........................................29 M Mailing addresses................................... 6 Medical & health care expenses Instructions........................................18 Worksheet..........................................27 Military..........................................9, 17-18 Modified adjusted gross income.............. 7 S Schedule of Adjustments..................15-19 Schedule of Credits..........................20-23 School district numbers....................40-45 SD 100 Completing the top portion................13 General information........................... 46 Line instructions................................. 47 School district tax rates.................40-45 Senior citizen credit......................... 20, 47 Social Security income.......................... 16 U Use (sales) tax Instructions........................................ 14 Worksheet..........................................31 These instructions contain law references for specific line items and requirements. To review Ohio income and school district income tax law, see codes.ohio.gov/orc/5747 and codes.ohio.gov/orc/5748, respectively. Check Your Refund Status Anytime, Anywhere! ¬ 24-Hour Hotline - 1-800-282-1784 S ¬ Online at tax.ohio.gov/refund ¬ Mobile App - Search "Ohio Taxes" on your device's app store. Federal Privacy Act Notice: Because we require you to provide us with a Social Security number, the Federal Privacy Act of 1974 requires us to inform you that providing us with your Social Security number is mandatory. Ohio Revised Code sections 5703.05, 5703.057 and 5747.08 authorize us to request this information. We need your Social Security number in order to administer this tax. 3 2022 Ohio IT 1040 / SD 100 Taxpayer Assistance Need Help? – To help answer your questions and ensure that your tax returns are filed accurately, the Department of Taxation provides the following resources at tax.ohio.gov: Forms – Find all individual and school district income tax forms (including related schedules and worksheets). Many forms have fill-in versions that you can complete online, print, and then submit to the Department. You can also request tax forms anytime by calling 1-800-282-1782. U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E FAQs – Review answers to common questions on topics such as business income and residency issues. Online Services – File your state and school district income tax returns for free. There are also several self-service options such as making payments, viewing transcripts, and accessing your 1099-G and 1099-INT statements from the Department. Online Notice Response Service – Securely submit documents online in response to most notices or requests for additional information sent by the Department. Guest Payment Service – Make individual and school district income tax payments electronically without having to register for an Online Services account. Information Releases – Research detailed explanations and legal analyses of certain tax topics such as residency and tax issues facing military servicemembers and their civilian spouses. The Finder – Look up your address to determine if you live in a taxing school district as well as the tax rate and four-digit school district number. Ohio Virtual Tax Academy – View webinars designed and presented by Department staff on Ohio's state taxes. Tax Alerts – Sign up to receive tax updates and reminders from the Department via email. Contact Us - If you cannot find the answer using the website, you may contact the Department using any of the following methods: Email – Visit tax.ohio.gov/emailus to access a secure email form. Complete all required fields before submitting your question. Write – Contact the Department by mail at: Call – You may call to speak with an examiner at 1-800-282-1780* during the Department's normal business hours (8:00 a.m. to 5:00 p.m., Monday through Friday excluding holidays). Ohio Department of Taxation P.O. Box 182847 Columbus, OH 43218-2847 *Persons who use text telephones (TTYs) or adaptive telephone equipment only: Contact the Ohio Relay Service at 7-1-1 or 1-800-750-0750 and give the communication assistant the Ohio Department of Taxation phone number that you wish to contact. S Additional Resources Volunteer Income Tax Assistance Program (VITA) and Tax Counseling for the Elderly (TCE): These programs help persons with disabilities as well as elderly, low-income and limited English-speaking taxpayers complete their state and federal returns. For locations in your area, call 1-800-906-9887, or visit their website: http://www.irs.gov/Individuals/Free-Tax-Return-Preparation-for-You-by-Volunteers AARP: Trained and certified AARP tax aide volunteer counselors assist low- to middle-income taxpayers, with special attention to those age 50 and older. For more information, call 1-888-227-7669 or visit their website: http://www.aarp.org/money/taxes/aarp_taxaide/ 4 2022 Ohio IT 1040 / SD 100 Our Mission To provide quality service to Ohio taxpayers by helping them comply with their tax responsibilities and by fairly applying the tax law. A Message From the Ohio Tax Commissioner Dear Ohio Taxpayers, U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E Thank you to all Ohioans for taking the time to prepare and file the 2022 Ohio income tax return. You will find some changes this year to Ohio’s income tax filing system. This instruction booklet will explain those changes and how best to fill out your return. Please note some of the changes to Ohio’s income tax for tax year 2022: • • • All tax brackets have been adjusted for inflation. As a result, taxpayers with taxable income of $26,050 or less will pay no income tax. A new addition and credit are applicable to investors in a pass-through entity that files the IT 4738. A new, nonrefundable credit is available for employing certain persons enrolled in a certified vocational training program. If you aren’t already filing your tax return electronically, please consider joining the 93 percent of taxpayers who do so. It’s more accurate, more secure, and the quickest way to get a refund. Remember, you can file your Ohio tax return online and for free with our I-File system. Please keep in mind the deadline for filing both your Ohio and federal tax return is April 18, 2023. And as a reminder, a request for a filing extension does not extend your payment due date. If you have any questions or need assistance with your return, you can contact our Taxpayer Assistance line at 1-800-2821780, or click on ‘Contact Us’ at tax.ohio.gov. Best wishes, S Jeff McClain Ohio Tax Commissioner IMPORTANT: The printed version of these instructions are accurate as of December 12, 2022. Any changes made after this date will be listed below in the online version of the instructions at tax.ohio.gov/forms. 5 2022 Ohio IT 1040 / SD 100 Highlights for 2022 Schedules of Withholding. Paper filers must complete the Schedule of Ohio Withholding (and Schedule of School District Withholding) listing each income statement reporting Ohio (or school district) tax withheld. See pages 14 and 47 for more information. Modified Adjusted Gross Income. Beginning with tax year 2019, your exemption amount, certain credits, and the school district income tax bases are determined using "modified adjusted gross income" or "modified adjusted gross income less exemptions." See the instructions on page 7. U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E New Ohio Income Tax Tables. For tax year 2022, individuals with Ohio taxable nonbusiness income of $26,050 or less are not subject to Ohio income tax. Also, the tax brackets have been indexed for inflation per Ohio Revised Code section 5747.02(A)(5). See pages 31-37. New Pass-Through Entity Related Addition and Credit. A new addition and credit are applicable to investors in a pass-through entity that files the IT 4738. See pages 15 and 23. New Vocational Job Credit. A new nonrefundable credit is available for individuals who employ eligible employees in a work based learning experience, internship, or cooperative education program and were issued a credit certificate from the Ohio Department of Education. See the instructions on page 21. Guest Payment Service. The Department now has an option to make Ohio income tax payments without registering for an account. For more information, see tax.ohio.gov/Pay. Electronic Estimated Payments. Estimated payments can be submitted with your electronically filed Ohio IT 1040 and/or SD 100 through a participating third-party tax preparation product. Payments may be future-dated but must be scheduled by the 4th quarter estimated payment due date. Electronic 1099-G. Your 1099-G is available to view and print using Online Services at tax.ohio.gov/File. You can elect to receive your 1099-G electronically. Common Filing Tips for Paper Filers Write legibly using black ink and UPPERCASE letters. Double-check your demographic information. • Verify your name(s) and SSN(s) are correct. • Verify your current address. If you are due a refund, it will be mailed to this address. Verify the forms and vouchers are for the correct tax year. • The Department releases new forms and vouchers each tax year. Do not change the year on the form or voucher. If you do this, processing of your form or voucher may be delayed. Do not write on software-generated returns. • If you print a software-generated return from a tax preparation program and later need to change information on the return, do not write in the changes. Use the software to make the necessary changes and reprint the return. • The Department’s system will not pick up handwritten changes on returns generated by tax preparation software. Use the proper payment voucher. • Use the Ohio IT 40P to pay your Ohio income tax, and the Ohio SD 40P to pay your school district tax due. • If you are amending your return(s), use the Ohio IT 40XP to pay your Ohio income tax, and the Ohio SD 40XP to pay your school district tax due. S Do not staple, paper clip, or otherwise attach your return together. • This will allow the Department to process your return as quickly as possible. We will ensure your return information stays grouped together. Round all figures to the nearest dollar. ● To round, drop any cents less than 50 cents and increase amounts 50 cents or above to the next dollar. Include all necessary schedules and worksheets. • If you have an amount on line 2a and/or 2b of your IT 1040, include the Ohio Schedule of Adjustments. • If you have an amount on line 9 and/or 16 of your IT 1040, include the Ohio Schedule of Credits and any appropriate worksheets. • If you have an amount on line 11 of your Ohio Schedule of Adjustments, include the Ohio Schedule IT BUS. • If you have dependents, include Ohio Schedule of Dependents. • Ensure your return is placed in the proper order: 1) Ohio IT 1040 (pages 1 and 2) 2) Ohio Schedule of Adjustments 3) Ohio Schedule IT BUS 4) Ohio Schedule of Credits 5) Ohio Schedule of Dependents 6) Ohio Schedule of Withholding 7) Worksheets and attachments 8) Wage and income statements Include verification for your withholding and credits. • If you have an amount on line 14 of your IT 1040 and/or an amount on line 7 of your SD 100, include the Schedule of Ohio Withholding and/or Schedule of School District Withholding as well as copies of your wage and income statements. • If you are claiming any refundable and/or nonrefundable business credits on your Ohio Schedule of Credits, include copies of the required certificates and/or Ohio K-1s. Do not include any banking information with your return. • Direct deposit of individual income and school district income tax refunds is not available to paper filers. When filing both Ohio and school district income tax returns, send each return in its own envelope. 6 2022 Ohio IT 1040 / SD 100 Payment Options and Mailing Addresses Generally, Ohio income and school district income tax is due by April 18, 2023. There are several options for paying these taxes. Payments for Ohio and school district income taxes must be made separately. What information do I need when using this payment method? Please have the following information available: ● The Ohio jurisdiction code: 6446; ● Your SSN and your spouse’s SSN (if filing jointly); ● The tax year of your payment; ● The payment amount; ● Your credit or debit card number and expiration date; AND ● The school district number (if making a school district income tax payment). What if there’s a problem with my payment? Call ACI Payments at 1-800-487-4567. Paper Check or Money Order Any filer can pay by check or money order. If you use a money order, keep a copy for your records. You will be charged a $50 fee for writing a bad check. U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E The Department is not authorized to set up payment plans. You may submit partial payments toward any outstanding tax, interest, or penalty. However, such payments will not stop the Department's billing process or collection attempts by the Ohio Attorney General's Office. ACI Payments charges a service fee of 2.65% of your payment or $1, whichever is greater. Ohio does not receive any of this fee. The payment will appear on your credit card statement as two separate entries – one for the payment and another for the service fee. Electronic Check Any filer can pay by electronic check via the Department's Online Services or Guest Payment service, both available at tax.ohio. gov/Pay. Note: If you are filing in Ohio for the first time, you may not be eligible to use the Department's Online Services or Guest Payment service to pay your Ohio income taxes. Additionally, electronic filers can follow their filing software's payment prompts at the time they file their returns. An electronic check withdraws funds directly from your checking or savings account. There is no fee for using this payment method. Generally, your payment will be withdrawn within 24 hours of the date you choose for payment. You must ensure that the funds are in your account and available on the date you choose for payment. The payment will show on your bank statement as “STATE OF OHIO”. How do I make a debit or credit card payment by phone? When you call ACI Payments: ● First, when prompted, enter “2”. ● Second, when prompted, enter “6446#”. ● Third, verify the information. If correct, enter “1”. ● Fourth, when prompted, enter “1” if making an income tax payment, or “2” if making a school district income tax payment. Ohio IT 1040: Make your check or money order payable to “Ohio Treasurer of State.” Include the tax year, form name, and the last four digits of your SSN on the “Memo” line. Include the appropriate voucher: ● IT 40P for original returns; OR ● IT 40XP for amended returns. SD 100: Make your check or money order payable to “School District Income Tax.” Include the tax year, form name, the last four digits of your SSN, and the school district number on the "Memo" line. Include the appropriate voucher: ● SD 40P for original returns; OR ● SD 40XP for amended returns. All payment vouchers are available at tax. ohio.gov/forms. You will then be prompted to enter your payment information. Where Should I Mail My Return and/or Payment? If Submitting Ohio Form: Mail To: IT 1040 without payment Ohio Department of Taxation P.O. Box 2679 Columbus, OH 43270-2679 IT 1040 with payment (include Ohio IT 40P / IT 40XP) Ohio Department of Taxation P.O. Box 2057 Columbus, OH 43270-2057 SD 100 without payment Ohio Department of Taxation P.O. Box 182197 Columbus, OH 43218-2197 Any filer can pay using a debit or credit card (Discover, Visa, MasterCard, or American Express). These payments can be made via tax.ohio.gov/Pay or www.acipayonline.com. You can also pay over the phone by calling 1-800-272-9829. You cannot future-date a debit or credit card payment. SD 100 with payment (include SD 40P / SD 40XP) Ohio Department of Taxation P.O. Box 182389 Columbus, OH 43218-2389 IT 40P / IT 40XP Ohio Department of Taxation P.O. Box 182131 Columbus, OH 43218-2131 Note: ACI Payments, Inc. processes all debit and credit card payments. SD 40P / SD 40XP Ohio Department of Taxation P.O. Box 182389 Columbus, OH 43218-2389 You can delay payment until the payment deadline of April 18, 2023. You can also pay your quarterly 2023 Ohio individual and/or school district estimated income tax with this method. Important: Future-dated payments can only be modified through the Department's Online Services at tax.ohio.gov/File. S Debit or Credit Card If Only Submitting Payment With Voucher: Mail To: 7 2022 Ohio IT 1040 / SD 100 General Information for the Ohio IT 1040 and SD 100 When Are My Ohio Returns Due? Most taxpayers must file their Ohio IT 1040 and SD 100 (if applicable) by April 18, 2023. You must file your return by this date even if you are unable to pay the tax due. For an exception for certain military servicemembers, see page 9. You may check the box above your tax preparer's name on page 2 of the return to authorize your preparer to: ● Contact the Department about the status of your return, payments, or refund; ● Provide the Department with information missing from your return; AND ● Respond to inquiries or notices from the Department related to the return. What Is Modified Adjusted Gross Income? Modified adjusted gross income is your Ohio adjusted gross income (Ohio IT 1040, line 3) plus your business income deduction (Ohio Schedule of Adjustments, line 11). If you did not take a business income deduction, your modified adjusted gross income matches your Ohio adjusted gross income. You will need to know your modified adjusted gross income to determine your personal exemption amount and if you qualify for any of the following credits: ● Retirement income credit; ● Lump sum retirement credit; ● Senior citizen credit; ● Lump sum distribution credit; ● Child care and dependent care credit; ● Exemption credit; AND ● Joint filing credit. U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E Filing extensions: Ohio does not have an extension request form, but honors the IRS extension. If you filed an IRS extension, your due date for filing your Ohio IT 1040 and SD 100 is October 16, 2023. Include a copy of your IRS extension or IRS acknowledgment, and/or your extension confirmation number. Can My Tax Preparer Contact the Department About My Tax Return? An extension of time to file does not extend the time for payment of the tax due. You must make extension payments by April 18, 2023 on the Ohio IT 40P and/or SD 40P. Interest will accrue on any tax not paid by April 18, 2023, and penalties may also apply. See R.C. 5747.08(G) and Ohio Adm. Code 5703-7-05. What Tax Records Do I Need to Keep? Keep a copy of your: ● Income tax returns and schedules; ● Wage and income statements; ● Supporting documentation; ● Payment records; for at least four years from the later of the filing due date or the date you filed the return. You must be able to support all items listed on your return. See R.C. 5747.17. How Should I Complete My Income Tax Returns? ● Only use black ink. ● Round numbers to the nearest dollar. ● Print numbers and letters (UPPER CASE only) inside the boxes as shown: 123 ANY ST R EET When Will I Receive my Refund? S 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. What Information Must a Preparer Provide? A tax return preparer must provide his/her printed name and Preparer Tax Identification Number (PTIN) on all returns. The PTIN serves as the preparer's signature. The preparer should not otherwise sign the return. See R.C. 5703.263(C) and 5747.08(F). You may also complete form TBOR 1, Declaration of Tax Representative available at tax.ohio.gov/forms. This form authorizes a tax representative to represent you in any matter before the Department. See R.C. 5747.08(J). Should I Make Estimated Tax Payments for Tax Year 2023? If your income is subject to Ohio withholding, you generally do not need to make estimated payments. You should make estimated payments for tax year 2023 if your estimated Ohio tax liability (total tax minus total credits) less Ohio withholding is more than $500. Estimated payments are made quarterly according to the following schedule: 1st quarter - April 18, 2023 2nd quarter - June 15, 2023 3rd quarter - Sept. 15, 2023 4th quarter - Jan. 16, 2024 Use the Ohio IT 1040ES vouchers to make estimated Ohio income tax payments. Use the Ohio SD 100ES vouchers to make estimated Ohio school district tax payments. You can determine your estimated payments using the worksheet included with the vouchers. Joint filers should determine their combined estimated Ohio tax liability and make joint estimated payments. Note: Instead of making estimated payments, you can increase your Ohio withholding by filing a revised Ohio IT 4 with your employer. Also, special rules regarding estimated payments apply to certain taxpayers with farming and/or fishing income. See Adm. Code 5703-7-04. If you do not make the required estimated payments, you may be subject to an interest penalty for underpayment of estimated taxes. See form IT/SD 2210. For more information, see the "Income - Estimated Income/School District Taxes and the 2210 Interest Penalty" topic at tax.ohio.gov/ FAQ. See also R.C. 5747.09. Additionally, if you live in an earned income tax base school district, your taxable income is limited to only earned income included in your modified adjusted gross income. Use the worksheet on page 31 to calculate your modified adjusted gross income. See R.C. 5747.01(II). What if a Taxpayer Is Deceased? The taxpayer's representative, such as an executor or administrator, must file the deceased taxpayer's return by: ● Checking the "Deceased" box after the applicable SSN; ● Selecting the filing status from the federal income tax return; AND ● Signing the return on behalf of the deceased. If the taxpayer is due a refund, the check will be issued in the taxpayer's name. The taxpayer's representative can present proof that she or he is the executor or administrator to the bank when cashing the check. If the taxpayer's representative needs the check reissued to include his or her name, see the "Income - General" topic at tax.ohio. gov/FAQ for instructions. See R.C. 5747.08(A). What if I Move After Filing My Return? If you move after filing your return, notify the Department of your new address as soon as possible. You should also notify the post office at moversguide.usps.com. 2022 Ohio IT 1040 / SD 100 8 Amending Your Ohio IT 1040 and SD 100 You can file an amended Ohio IT 1040 or SD 100 to report changes to your originally filed return(s). An amended return can result in either a tax due or a refund based on the changes. Under certain circumstances, an amended return may be required. Net Operating Loss: To claim a federal NOL carryback, check both boxes at the top of the return(s) and include a completed Ohio Schedule IT NOL. See the instructions for the Ohio Schedule IT NOL on page 50. Your amended Ohio IT 1040 and/or SD 100 must be filed no later than 90 days after the IRS completes its review of CAUTION your federal return, even after the four-year period has passed. Failure to file the return within the 90-day period may result in an assessment or a denial of your refund claim. ! U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E To amend the Ohio IT 1040 or SD 100, you should file a new return, reflecting all proposed changes, and indicate that it is amended by checking the box at the top of page 1. You must include the IT RE with your amended IT 1040 and/or the SD RE with your amended SD 100. Use your current mailing address on the amended return. Allow at least 120 days from the date of receipt to process your amended return. For more information, see the "Income Amended Returns" topic at tax.ohio.gov/ FAQ. ● Residency status: Any document supporting your residency change including property records (mortgage statements, lease agreements, etc.), driver's licenses or state IDs, voter registration, resident state tax returns, armed services records and utility bills. ● Payments/credits: Copies of your income statements (W-2, 1099, etc.), Ohio IT K-1, or credit certificates; ● Nonresident credit: Ohio form IT NRC. See R.C. 5747.11. Reporting Additional Tax Due When Not to Amend Your Return You should amend your return to report additional income, or reduce a previously claimed credit or deduction. Such changes may result in additional tax due. Include payment with your amended return using an IT 40XP and/ or SD 40XP payment voucher. Some common mistakes may not require an amended return. Some examples include: ● Math errors; ● Missing pages or schedules; ● Demographic errors; ● Missing income statements (W-2, 1099, K-1) or credit certificates; ● Unclaimed payments or withholding. If the IRS makes changes to your federal return, either based on an audit or an amended return, and those changes affect your Ohio return(s), you are required to file an amended IT 1040 and/or SD 100. The IRS notifies the Department of these changes. In these situations, the Department will either make the corrections or contact you to request documentation. Requesting a Refund S You may amend your return to request an additional credit, deduction or payment. Such changes may result in a refund. Generally, you have four years from the date of the payment to request a refund. You must include documentation to support the changes reported on your amended return. Some common required documentation includes: ● Business Income: Page 1 of your federal return, the federal schedules reporting your business income, and IT K-1 forms; ● Social security, disability, survivorship, and retirement benefits: Copies of 1099(s), page 1 of your federal return, and the retirement plan paying the benefits; Changes to Your Federal Return Do not file your amended Ohio return(s) until the IRS has finalized the changes to your federal return. Once they are finalized, include a copy of all of the following: ● Your federal 1040X; ● The IRS acceptance letter; AND ● The refund check issued to you by the IRS, if applicable. Note: Instead of providing these documents, you may be able to submit a copy of the IRS Tax Account Transcript reflecting your updated federal return information. If there is a change in your filing status and/ or dependents, it must be reflected on your amended Ohio return(s). Additionally, for changes to dependents, complete an updated Ohio Schedule of Dependents. See R.C. 5747.10. Changes to Your Resident Credit You must file an Ohio amended return based on changes made by another state if all of the following are true: ● You claimed a resident credit on your Ohio IT 1040; ● You filed income tax returns in other states; ● The Ohio resident credit claimed was based on either the taxes due or the taxes paid to the other states; ● The other states made changes to the returns; AND ● The changes will affect your Ohio resident credit calculation. Your income taxes paid to other states may change after the four-year period has passed. If the taxes paid would otherwise qualify for the Ohio resident credit, you have an additional 90 days after the changes have been finalized by the state(s) to file an amended return and request any refund that results from the changes. Once the changes are finalized, please include a copy of all of the following: ● A revised Ohio form IT RC; ● The other state return(s) or correction notice(s); AND ● Proof of payment to the other state(s). See R.C. 5747.05(B)(3). 2022 Ohio IT 1040 / SD 100 9 Ohio Income Tax for Military Servicemembers and Their Civilian Spouses Residency. A military servicemember is a resident of their "state of legal residence." This is generally the same as the servicemember's "home of record" unless it is subsequently changed. The servicemember's state of legal residence does not change based on military orders. the deductions available under Ohio law. However, the Department recommends that such taxpayers file an Ohio IT 1040 or IT 10 to avoid delinquency billings. For more information on who must file an Ohio income tax return, see page 11. earned by a nonresident servicemember ● Line 28 - Deduction for uniformed services retirement income ● Line 29 - Deduction for military injury relief fund grants and veteran's disability severance payments ● Line 30 - Deduction for certain reimbursements and benefits received for service in the Ohio National Guard Extensions to File/Pay. Generally, Ohio recognizes any extensions granted by the IRS. Certain military servicemembers will have the same extensions to file their Ohio returns and pay any Ohio tax due. These servicemembers do not owe interest, penalties, or the interest penalty in connection with this extension period. See R.C. 5747.026 for more information. U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E A servicemember's civilian spouse will also retain their original state of legal residence if the servicemember and spouse have the same state of legal residence and the spouse is accompanying the servicemember as part of military orders. Additionally, a civilian spouse can elect to have the same state of legal residence as the servicemember. ● Line 27 - Deduction for military pay Deductions. Ohio provides five deductions to military servicemembers. Only income included in the taxpayer's federal adjusted gross income is eligible for these deductions. For example, Ohio Veterans Bonus payments are not included in federal adjusted gross income and thus are not deductible. The following deductions are in the "Uniformed Services" section of the Ohio Schedule of Adjustments: ● Line 26 - Deduction for military pay and allowances for certain active duty servicemembers stationed outside Ohio Additionally, a servicemember's nonresident civilian spouse can deduct, on line 27, compensation earned in Ohio, when the servicemember and spouse have the same state of residence and are present in Ohio due to military orders. See pages 17-18 for specific instructions on each of these deductions. Taxability. The charts below summarize the taxability of income for military servicemembers and their civilian spouses. Withholding. A servicemember who qualifies for the deduction on line 26 or a civilian spouse who qualifies for the deduction on line 27 can complete form IT 4 to avoid Ohio withholding on income not subject to tax. Such taxpayers should check the appropriate box in Section III of the IT 4 and provide the form to their employers. School District Income Tax. Military servicemembers and their civilian spouses may be liable for school district income tax if they are Ohio residents, even if they are not present in Ohio due to military orders. To determine if you are liable for school district income tax, see page 46. Filing. Certain military service members may not have a filing requirement due to Taxability of a Military Servicemember's Income in Ohio 1) If the servicemember is a: 2) And the income is earned: 3) 4) Resident of Ohio In Ohio Nonresident of Ohio Outside of Ohio And the source of the income is: Military Service NonMilitary Then the income is: Taxed in Ohio Taxed in Ohio Military Service NonMilitary In Ohio Military Service Deductible on Eligible for Deductible on Sch. of Adj., the Resident Sch. of Adj., line 27 line 26 Credit Outside of Ohio NonMilitary NonMilitary Military Service Taxed in Ohio Deductible on Eligible for the Sch. of Adj., Nonresident line 27 Credit Taxability of a Servicemember's Civilian Spouse's Income in Ohio 1) If the spouse is a: Resident of Ohio Nonresident of Ohio And the spouse and servicemember: 3) And the income is earned: In Ohio Outside of Ohio In Ohio Outside of Ohio In Ohio Outside of Ohio 4) Then the income is: Taxed in Ohio Eligible for the Resident Credit Deductible on Sch. of Adj., line 27 Eligible for the Nonresident Credit Taxed in Ohio Eligible for the Nonresident Credit S 2) N/A (Skip to #3) The same state of legal residence Different states of legal residence For more information, see tax.ohio.gov/military, or Information Release IT 2008-02, "Ohio Taxable Income and Deductions for Servicemembers and Civilian Spouses." You can also email the Department at [email protected] 2022 Ohio IT 1040 / SD 100 10 Ohio Definitions and Examples of Business and Nonbusiness Income How Is Business Income Treated on My Ohio Return? Generally, income recognized by a sole proprietorship or pass-through entity is business income. However, determining if income is business income is highly dependent upon the specific facts and circumstances. Mineral Rights Income: Cynthia allows a company to extract minerals from her residential property. She receives income based on the company's usage of her land. Since Cynthia is not engaged in a trade or business related to this income, it is not business income. Pass-Through Income: Ellen owns 15% of a pass-through entity. She reports $50,000 of ordinary income, $10,000 of bonus depreciation, and $60,000 of guaranteed payments on federal Schedule E. Since Ellen owns less than 20% of the entity, the guaranteed payments are nonbusiness income. Thus, her net business income from federal Schedule E is $40,000 (her ordinary income less bonus depreciation). U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E Taxpayers can deduct the first $250,000 ($125,000 for married separate filers) of their business income included in their federal adjusted gross income. Also, any business income not deducted is taxed at a flat 3%. See the instructions for the Ohio Schedule IT BUS on page 19. activities of the business during the taxable year in which the sale occurs or during any of the five preceding taxable years. Additionally, Ohio-related business income earned by nonresidents is taxable to Ohio. See the instructions for the IT NRC on page 23. How Does Ohio Law Define Business and Nonbusiness Income? "Business income" is income, including gain/ loss, arising from any of the following: ● Transactions, activities, and sources in the regular course of a trade or business operation; ● Real, tangible, and intangible property if the acquisition, rental, management, and disposition of the property constitute integral parts of the regular course of a trade or business operation; ● A partial or complete liquidation of a business, including gain or loss from the sale or other disposition of goodwill; ● Income from certain sales of equity or ownership interests in a business; OR ● Compensation and guaranteed payments paid by a pass-through entity, or a professional employer organization on its behalf, to an investor who directly or indirectly owns 20% or more of the entity. "Nonbusiness income" is any income other than business income. See R.C. 5747.01(B), 5747.01(C) and 5733.40(A)(7). How Do I Determine What Income Is Business Income? Business income can be determined by using either test: Transactional Test: Looks to the nature, frequency and regularity of the transaction. S Functional Test: Looks to if the property was integral to the trade or business, or if it generated business income in the past. See Kemppel v. Zaino, 2001-Ohio-92. Sale of an equity or ownership interest in a business means the sale was treated as an asset sale for federal income tax purposes and/or the seller materially participated, as described in 26 C.F.R. 1.469-5T, in the What Are Some Examples of Business Income vs. Nonbusiness Income? Interest and Dividends: John reports $1,500 of interest and dividend income on federal Schedule B. $200 of his interest income is from a pass-through entity that primarily operates an investment business. The remaining $1,300 is from personal, nonbusiness sources. Thus, only $200 of John’s interest is business income. Capital Gains and Losses: Andrew recognizes a capital gain from the sale of a tractor used to harvest wheat on his farm. Since the tractor was integral to his farming business, the capital gain is business income. Capital Gains and Losses: Paul reports $8,000 of capital gain income on his federal Schedule D. $2,000 of the capital gains are from a pass-through entity that primarily operates an investment business. The remaining $6,000 is from personal, nonbusiness sources. Thus, only $2,000 of Paul’s capital gains are business income. Rental Income and Losses: Debbie owns a rental property. She actively advertises, manages, and maintains the property. Debbie is in the trade or business of property rental. Therefore, her rental income is business income. Rental Income and Losses: Ryan occupies a home on a golf course. The golf course hosts a two-week tournament every year. Ryan annually takes a vacation to Florida and rents out his home during the tournament. While the rental might be considered regular, Ryan is not in the trade or business of property rental. Therefore, his rental income is not business income. Guaranteed Payments: Stan owns 25% of a pass-through entity. He reports a $60,000 guaranteed payment on federal Schedule E. Because he owns at least 20% of the entity, the guaranteed payment is business income. Wages/Compensation: Jim owns 80% of an S corporation. Jim receives $200,000 of wages from the S corporation, which are reported on a W-2. Because he owns at least 20% of the corporation, the wages are reclassified as business income. Trust Income: Brett sets up a trust, with himself as the beneficiary, that invests in multiple pass-through entities. Operating income from these entities is distributed to the trust, which further distributes the income to Brett. Since the income was business income to the entities, it retains its character as business income as it passes through to the trust and to Brett. Trust Income: David sets up a trust, with himself as the beneficiary, to hold his personal investments. Although David uses a trust, the usage of a trust does not create a trade or business. Therefore, the investment income is nonbusiness income to both the trust and to David. Royalty Income: Hannah works full-time from her home writing children’s books. Hannah has an agreement with a publisher that pays her a royalty for each copy of her book that is sold. Hannah is in the trade or business of writing books. Therefore, her royalty income is business income. For more information, see the "Income – Business Income and the Business Income Deduction" topic at tax.ohio.gov/FAQ. . 2022 Ohio IT 1040 11 General Information for the Ohio IT 1040 Who Must File an Ohio Income Tax Return? What Is my Ohio Residency Status? How Do I Show I Am a Nonresident of Ohio? Resident: You are an Ohio resident for income tax purposes if you are domiciled in Ohio. Thus, under Ohio law, the terms “domiciled” and “resident” mean the same thing. Any individual can challenge the presumption of Ohio residency by providing documentation showing that they are a nonresident. Ohio uses a contact period test to determine the burden of proof needed to show that an individual is a nonresident. Generally, any individual with an abode in Ohio is presumed to be a resident. The abode can be either owned or rented. Temporary absence from your Ohio abode, no matter how long, does not change your residency status. Thus, if you live in Ohio, the presumption is that you are an Ohio resident. If you had fewer than 213 contact periods in Ohio during the tax year, you must provide enough documentation to show that it is more likely than not that you were a nonresident. If you had 213 or more contact periods, you must provide clear and convincing documentation that you were a nonresident. Example: Brent travels to Florida each winter and returns to Ohio each spring. However, he maintains his Ohio driver's license, voter registration, etc. and has not established permanent residence in Florida. Therefore, he is a full-year resident of Ohio. Alternatively, certain individuals can change the presumption of Ohio residency to a presumption of nonresidency by filing the Ohio Nonresident Statement (form IT NRS). For more information on this statement, see pages 13 and 49. Part-year resident: You are a part-year resident of Ohio if you were a resident of Ohio for a portion of the tax year and a nonresident for the rest of the tax year. Thus, you are a part-year resident if you permanently moved into or out of Ohio during the tax year. See R.C. 5747.24(B), (C) and (D). U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E Every Ohio resident and every part-year resident is subject to the Ohio income tax. Every nonresident having Ohio-sourced income must also file. Examples of Ohiosourced income include the following: ● Wages or other compensation earned in Ohio (see "Exception" below); ● Ohio lottery winnings; ● Ohio casino gaming winnings; ● Income or gain from Ohio property; ● Income or gain from a sole proprietorship doing business in Ohio; ● Income or gain from a pass-through entity doing business in Ohio. Ohio Residency Exception: A full-year nonresident living in Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia does not have to file if the nonresident's only Ohio-sourced income is wages. Example: Charley lives in Kentucky but commutes to Cincinnati every day to her job. Charley's wages are not taxable in Ohio even though they are earned here. You do not have to file an Ohio income tax return if: ● Your Ohio adjusted gross income (Ohio IT 1040, line 3) is less than or equal to $0; ● The total of your senior citizen credit, lump sum distribution credit, and joint filing credit (Ohio Schedule of Credits, lines 4, 5 and 12) is equal to or exceeds your income tax liability (Ohio IT 1040, line 8c) and you are not liable for school district income tax; OR ● Your exemption amount (Ohio IT 1040, line 4) is the same as or more than your Ohio adjusted gross income (Ohio IT 1040, line 3). However, even if you meet one of these exceptions, if you have a school district income tax liability (SD 100, line 2), you are required to file the Ohio IT 1040. Note: If your federal adjusted gross income is greater than $28,450, the Department recommends that you file an Ohio IT 1040 or IT 10, even if you do not owe any tax, to avoid delinquency billings. S Ohio IT 10: Certain taxpayers can file Ohio form IT 10 instead of the Ohio IT 1040. The four types of taxpayers described on form IT 10 are eligible to file the form if they: ● Do not have an Ohio individual income or school district income tax liability; AND ● Are not requesting a refund. Do not file the IT 10 if you file the IT 1040. See R.C. 5747.08. Part-year residents are entitled to the nonresident credit for any income earned while they were a resident of another state. They are also eligible for the resident credit on non-Ohio income earned while they were an Ohio resident, if they were subject to, and paid tax on, that income in another state. Nonresident: You are a nonresident if you were a resident of another state for the entire tax year. Nonresidents who earn or receive income within Ohio will be able to claim the nonresident credit with respect to all items of income not earned and not received in Ohio. If you are currently a member of the military and you have questions about your residency status, see page 9. For more information, see tax.ohio.gov/ residency, or Information Release IT 201801, "Residency Guidelines - Tax Imposed on Resident and Nonresident Individuals for Taxable Years 2018 and Forward." See also R.C. 5747.01(I)(1) and Cunningham v. Testa, 2015-Ohio-2744. What Is a Contact Period? You have a contact period in Ohio if all of the following are true: ● You have an abode outside of Ohio; ● You are away overnight from your abode; AND ● While away, you spend any portion of two consecutive days in Ohio. You do not have to spend the night in Ohio. For example, if you spend portions of Monday and Tuesday in Ohio, but stay in a hotel in Kentucky on Monday night, you would still have a contact period in Ohio. You must spend consecutive days in Ohio to have a contact period. For example, if you spend portions of Monday and Wednesday in Ohio, but not Tuesday, then you would not have a contact period in Ohio. See R.C. 5747.24(A). 12 2022 Ohio IT 1040 Donations that Apply to Ohio IT 1040 A donation will reduce the amount of the refund that you are due. If you decide to donate, this decision is final. CAUTION You cannot change your mind and later ask for your donations to be refunded. If you do not want to donate, do not enter an amount on Ohio IT 1040, lines 26a-g. ! Ohio Department of Veterans Services Military Injury Relief Fund P.O. Box 373 Sandusky, OH 44871 Wildlife Species and Endangered Wildlife The Division of Wildlife uses these funds to establish habitat and protect open spaces for wildlife. Past donations have helped to restore populations of endangered species. Your generous donation will continue to help support Ohio's native wildlife – a natural treasure! U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E Because your tax return is confidential, the Department cannot release your name to the fund administrators, but the administrators extend appreciation to those who donate. Your donation may be tax-deductible on a future federal income tax return. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide grants to such individuals, you may do so by writing a check payable to "Ohio Treasurer of State (ODVS)" and mailing it to: See R.C. 5747.113. Breast and Cervical Cancer Project Contributions made to the project are used to provide free breast and cervical cancer screening, diagnostic and outreach/case management services to uninsured and underinsured Ohio women. The project is administered by the Ohio Department of Health and is operated through 11 regional agencies, which enroll women in the program and schedule them for services with clinical providers in the agency's service area. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide grants for free breast and cervical cancer screening, you may do so by writing a check payable to "Ohio Treasurer of State" or "Ohio Department of Health" and mailing it to: Ohio Department of Health Attn: Breast & Cervical Cancer P.O. Box 15278 Columbus, Ohio 43215-0278 In the description on the check, please write "Breast and Cervical Cancer Donation." Military Injury Relief Fund S The Military Injury Relief Fund provides grants to individuals injured while in active service as a member of the U.S. armed forces and to individuals diagnosed with post-traumatic stress disorder while serving, or after having served, in Operation Iraqi Freedom, Operation New Dawn or Operation Enduring Freedom. Ohio History Fund The Ohio History Fund is a 501(c)(3) nonprofit organization that allocates these funds toward a matching grants program to support state and local history-related projects throughout Ohio. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide grants to promote and protect Ohio's rich history, you may do so by writing a check payable to "The Ohio History Connection Income Tax Contribution Fund" and mailing it to: The Ohio History Connection Attn: Business Office 800 E. 17th Avenue Columbus, OH 43211-2474 Donations may also be made online at www.ohiohistory.org. State Nature Preserves and Scenic Rivers Contributions are used to protect Ohio's state nature preserves, scenic rivers, rare species and unique habitats. Your donations play a critical role in caring for Ohio's most exceptional forests, wetlands, prairies, rivers and streams. Donations fund educational outreach programs, research and monitoring for rare species and construction of facilities that improve public access. If you do not have an overpayment on your Ohio IT 1040, direct donations may also be made by check or online. Please visit the "Support Natural Areas" section at naturepreserves.ohiodnr.gov for information. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide grants to protect Ohio's natural heritage, you may do so by writing a check payable to the "Nongame and Endangered Wildlife Special Account" and mailing it to: Ohio Department of Natural Resources Division of Wildlife 2045 Morse Road, Building G-1 Columbus, OH 43229-6693 To learn more, go to wildlife.ohiodnr.gov. Wishes for Sick Children Contributions are distributed by the Ohio Department of Health to fund a program administered by a nonprofit corporation that grants the wishes of individuals who are under the age of 18, Ohio residents, and have been diagnosed with a life-threatening medical condition. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide funds for Wishes for Sick Children, you may do so by writing a check payable to "Ohio Treasurer of State" or "Ohio Department of Health" and mailing it to: Ohio Department of Health Attn: Wishes for Sick Children P.O. Box 15278 Columbus, OH 43215-0278 2022 Ohio IT 1040 / SD 100 / IT 10 13 Completing the Top Portion of Your Ohio Returns These instructions are used to complete the top portions of the Ohio IT 1040, SD 100, and IT 10. IT 1040, SD 100 and IT 10 IT 1040 and IT 10 SD 100 Only School District Number School District Number Check this box if you are amending your previously filed return. You must include the Ohio IT RE and/or SD RE with your amended return. See page 8 for amended return instructions. This box is not available on form IT 10. If you were an Ohio resident for any part of the tax year, enter the number of the school district in which you lived during the majority of the year. Full-year nonresidents should enter 9999. Enter the school district number for which you are filing this return on pages 1 and 2. See pages 40-45 for a full list of Ohio’s school districts or use The Finder at tax. ohio.gov/Finder. U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E Amended Return Check Box Net Operating Loss (NOL) Check Box Check this box if you are amending due to a net operating loss carryback. You must include the Ohio Schedule IT NOL with your amended return. This box is not available on form IT 10. Name(s), Address and SSN(s) Enter your name and current address on page 1 and your SSN on pages 1 and 2 of your return (if filing jointly, also enter your spouse’s name and SSN on page 1). Do not include your spouse’s name and SSN if you are not filing jointly. Note: If you and/or your spouse have an Individual Taxpayer Identification Number (ITIN), you should enter the ITIN in the spaces provided on the return for the SSN. County If you were an Ohio resident for any part of the tax year, enter the first four letters of the county in which you lived during the majority of the tax year. Full-year nonresidents should leave these boxes blank. Filing Status Your filing status must be the same as your federal income tax filing status for the tax year. See R.C. 5747.08(E). If you check “married filing separately,” enter your spouse’s SSN in the spaces provided. If you and your spouse filed a joint federal return, you must file a joint Ohio income tax return even if one or both of CAUTION you are nonresidents of Ohio. You may claim the nonresident credit (see the Ohio Schedule of Credits) for income not earned or received in Ohio. If you and your spouse filed separate federal returns, you must file separate Ohio returns. S ! See pages 40-45 for a full list of Ohio’s school districts or use The Finder at tax. ohio.gov/Finder. Note: Some school districts levy an income tax on their residents. See page 46 for more information. Residency Status Check the box corresponding to your residency status. If your filing status is married filing jointly, each spouse must indicate his/ her residency status. If you checked the box for "part-year resident" or “nonresident,” write, in the space provided, the two-letter abbreviation of the state where you resided for the majority of the tax year. For more information on Ohio residency, see page 11. Ohio Nonresident Statement Nonresidents who meet certain required criteria and wish to establish an irrebuttable presumption of non-Ohio residency for the tax year may check these boxes instead of filing form IT NRS. The five required criteria are listed on page 49 under the heading, “What Criteria are Required to File the Ohio Nonresident Statement?” Nonresidents who file jointly and both meet the required criteria can each check the appropriate box to establish an irrebuttable presumption of non-Ohio residency. Note: Individuals who do not meet the required criteria are still able to file as nonresidents. Residents and part-year residents cannot check these boxes to establish an irrebuttable presumption of non-Ohio residency. Extension Filer Any taxpayer with a valid federal extension is allowed an extension of time to file their Ohio returns. Such taxpayers should check the box indicating they are a federal extension filer for this tax year to qualify for the Ohio extension. For more information on filing extensions, see page 7. School District Residency Status Check the box corresponding to your residency status for the school district number you entered on the return. If you are a partyear resident, enter the dates of residency. Tax Type Check the box indicating the tax type of the school district for which you are filing this return. The list of school districts on pages 40-45 indicates the tax type of each taxing school district. For more information on the two tax types, see page 46. 14 2022 Ohio IT 1040 Ohio IT 1040 - Individual Income Tax Return Line 1 – Federal Adjusted Gross Income Line 4 – Personal and Dependent Exemptions Enter the amount from your 2022 federal income tax return: ● Federal 1040, line 11; ● Federal 1040-SR, line 11; OR ● Federal 1040-NR, line 11. Ohio allows an exemption for the following: ● You, if not claimed as a dependent on another person’s return; ● Your spouse, if filing jointly and not claimed as a dependent on another person’s return; AND ● Your dependents claimed on your federal tax return. See R.C. 5747.02(A)(3). Line 11 – Interest Penalty Generally, if you are a wage earner and have Ohio withholding, you will not owe an interest penalty. If you have non-wage income or no Ohio withholding, use Ohio IT/ SD 2210 to determine if an interest penalty is due. For more information, see the "Income - Estimated Income/School District Taxes and the 2210 Interest Penalty" topic at tax. ohio.gov/FAQ. See also R.C. 5747.09(D) and (E). U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E Generally, line 1 of your Ohio income tax return must match your federal adjusted gross income as defined in the Internal Revenue Code. Note: The tax amount listed in the Income Tax Table may be slightly lower or higher than the tax amount computed by using the Income Tax Brackets. ! CAUTION Zero or Negative Federal Adjusted Gross Income. If you have a zero or negative federal adjusted gross income, you must include a copy of page 1 of your federal return. A foreign trust that files federal form 1040NR should not use the IT 1040 to file with Ohio. Such trusts must file form IT 1041. See R.C. 5747.01(A). The personal and dependent exemption is based on your modified adjusted gross income (see page 7): Modified Adjusted Gross Income Personal/ Dependent Exemption $40,000 or less $2,400 $40,001 – $80,000 $2,150 More than $80,000 $1,900 Line 2a – Ohio Schedule of Adjustments (Additions) Enter your number of exemptions in the spaces provided. Multiply your exemptions by the appropriate amount from above and enter the result on line 4. The Ohio Schedule of Adjustments lists the additions to your federal adjusted gross income. For more information about the additions you must make, see pages 15-16. ● If you have no additions to your Ohio income, leave line 2a blank. ● Any additions listed on this line must be supported by the applicable Schedule of Adjustments line item(s). Enter the amount from Schedule of Adjustments, line 10 on this line. Example: John and Mary claim their son Patrick as an exemption on their jointly filed federal income tax return. Their modified adjusted gross income is $75,000. Thus, they claim three exemptions totaling $6,450 on their Ohio return. Patrick files his own tax return. Since Patrick is a dependent and his parents claim an exemption for him, he is not eligible for an exemption on his return. He should check the box indicating he can be claimed by someone else and enter $0 on line 4. You must include a copy of the Ohio Schedule of Adjustments with your return. Ohio Schedule of Dependents. If you included dependents on your Ohio return, complete the Ohio Schedule of Dependents. If your dependent has an individual tax identification number (ITIN) or adoption taxpayer identification number (ATIN), enter that number in the boxes for the dependent's SSN. If the dependent information is not provided, incomplete, or contains errors, you may be asked for supporting documentation. Line 2b – Ohio Schedule of Adjustments (Deductions) S The Ohio Schedule of Adjustments lists the deductions from your federal adjusted gross income. For more information about the deductions you must make, see pages 16-19. ● If you have no deductions to your Ohio income, leave line 2b blank. ● Any deductions listed on this line must be supported by the applicable Schedule of Adjustments line item(s). Enter the amount from Schedule of Adjustments, line 39 on this line. You must include a copy of the Ohio Schedule of Adjustments with your return. See R.C. 5747.025 and 5747.01(O). Line 8a – Tax on Line 7a Calculate your tax on your Ohio income tax base less business income. ● All taxpayers can utilize the Income Tax Brackets found on page 31. ● If your nonbusiness taxable income is less than $115,300, your tax has been calculated for you in the Income Tax Table found on pages 32-37. Line 12 – Unpaid Use (Sales) Tax Report the amount of unpaid use (sales) tax due for the tax year. You owe Ohio use tax if both of the following are true: ● You made purchases where sales tax was not collected; AND ● The purchases were not qualifying purchases made during Ohio's sales tax holiday. Use tax eliminates the disadvantage to Ohio retailers when Ohio shoppers buy from out-of-state sellers who do not collect sales tax. Use tax is most commonly due on out-of-state purchases such as those made from the internet, television, or catalogs. Use the worksheet on page 31 to calculate your use tax. For more information, see the "Sales and Use Tax" topics at tax.ohio. gov/FAQ. See also R.C. 5747.083. Line 14 – Ohio Income Tax Withheld Enter your Ohio income tax withheld as reported on Part A, line 1 of the Schedule of Ohio Withholding. Schedule of Ohio Withholding. Complete this schedule if you are reporting an amount on line 14 of the IT 1040. Enter only income statements (W-2, W-2G, 1099) reporting Ohio income tax withheld. Do not include: ● Taxes withheld for another state, a city, or a school district; OR ● Taxes paid by a pass-through entity and reported to you on an Ohio IT K-1 (report these amounts on Ohio Schedule of Credits, line 38). See the sample statements on pages 38-39. Do not list income statements that do not report Ohio income tax withheld. Place the state copies of your income statements after the last page of your return. Do not include income statements that are handwritten, self-created, or generated by your tax preparation software. See R.C. 5747.08(H). 15 2022 Ohio IT 1040 / Schedule of Adjustments Line 15 – Payments and Credit Carryforward Amounts Enter the following amounts: ● Estimated payments (Ohio IT 1040ES); ● Extension payments (Ohio IT 40P); AND ● Any credit carryforward amount from your prior year Ohio IT 1040. Line 26 – Donations Interest is due from the unextended due date until the date the tax is paid. Generally, you do not owe interest if you are due a refund. An extension of time to file does not extend the payment due date. The interest rate for calendar year 2023 is 5%. You may donate all or a portion of the amount on line 24 to one or more of the organizations listed. Such donations will reduce your refund, and are only allowed on timely filed, original returns; they are not allowed on amended returns. Certain military servicemembers may not be subject to interest. See page 9 for more information. If you decide to donate, this decision is final. For more information on the donation options, see page 12. See R.C. 5747.08(G). See also R.C. 5747.113. Line 23 – Total Amount Due Line 27 – Your Refund This amount must be paid by April 18, 2023. Do not mail cash. Instead, make payment by: ● Electronic check; ● Credit or debit card; OR ● Paper check or money order. If you do not request direct deposit, or you filed by paper, your refund will be mailed to the address on the tax return. U B JE D U N CT RA T IL T FT O 12 C /3 H 0/ AN 22 G E Do not include: ● A prior year's refund that you requested but did not receive. Contact the Department about the status of any such refund. ● Taxes paid by a pass-through entity and reported to you on an Ohio IT K-1 (report these amounts on Ohio Schedule of Credits, line 38). Line 22 – Interest Due See R.C. 5747.09(B). Line 17 – Amount Previously Paid (Amended Returns Only) When filing an amended return, enter the amount previously paid with your previously filed return(s) excluding the amount reported on line 15. Make your check or money order payable to "Ohio Treasurer of State" and include an Ohio IT 40P or IT 40XP payment voucher. Include the tax year and the last four digits of your SSN on the “Memo” line. Line 19 – Overpayment Previously Requested (Amended Returns Only) For more information regarding payment options, see page 6. When filing an amended return, enter the amount you reported on line 24 on your previously filed return(s). Line 25 - Credit Carryforward Line 1 – Non-Ohio State or Local Government Interest and Divid
Income Tax Instructions
More about the Ohio Income Tax Instructions Individual Income Tax TY 2022
Use this printable booklet to help you fill out and file your income taxes. these instructions cover Individual Income Tax (forms IT 1040, IT 1040EZ, Telefile) and School District Income Tax (SD 100).
We last updated the Income Tax Instruction Booklet in December 2022, so this is the latest version of Income Tax Instructions, fully updated for tax year 2022. You can download or print current or past-year PDFs of Income Tax Instructions directly from TaxFormFinder. You can print other Ohio tax forms here.
Other Ohio Individual Income Tax Forms:
|Form Code||Form Name|
|Form IT 1040ES||Income Tax Estimated Payment Vouchers and Instructions|
|Form IT 40P||Income Tax Payment Voucher|
|Form SD 100ES||School District Estimated Income Tax Payment Voucher for Individuals|
|Form SD 40P||School District Income Tax Payment Voucher|
|Form IT WH||Schedule of Ohio Withholding|
Ohio usually releases forms for the current tax year between January and April. We last updated Ohio Income Tax Instructions from the Department of Taxation in December 2022.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Ohio Income Tax Instructions
We have a total of eight past-year versions of Income Tax Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
While we do our best to keep our list of Ohio Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.