Ohio Income Tax Instruction Booklet
Extracted from PDF file 2016-ohio-income-tax-instructions.pdf, last modified December 2016
Income Tax Instruction Booklet• INSTRUCTIONS ONLY • NO RETURNS • INSTRUCTIONS ONLY • NO RETURNS • hio 2016 Instructions for Filing: • Personal Income Tax • School District Income Tax r o f e n i l n File o refund! a faster For Use By: • Full-Year Residents • Part-Year Residents • Nonresidents hio tax. Department of Taxation hio.gov • INSTRUCTIONS ONLY • NO RETURNS • INSTRUCTIONS ONLY • NO RETURNS • Go Paperless and File Electronically! Free to File ‰ You can use I-File to electronically file your state and school district income tax returns free of charge. Easy to Use ‰ I-File will calculate your return, reducing the chance for error. Faster Refund ‰ Most electronic filers receive their refunds in approximately 15 business days by direct deposit. Paper-filed returns will take 8-10 weeks to process. tax.ohio.gov -2- 2016 Ohio IT 1040 / Instructions A Message From the Ohio Tax Commissioner Dear Ohio Taxpayers, Protecting your tax dollars, as well as ensuring the security of your personal identification and tax information, remain our top priority in these times of rampant crime occurring across the Internet. The incidence of stolen personal identification information remains high, as does the attempt to steal tax refunds by the filing of fraudulent tax returns. Since 2014, when this surge of cyber-crime began, we have blocked more than 420,000 attempts to steal tax refunds, that in total exceed a half-billion dollars. We cannot and will not let down our guard. Ohio’s use of an Identity Confirmation Quiz to help verify the legitimacy of a refund request, along with a heightened vigilance among taxpayers, tax preparers, the financial community, the IRS and our staff, has coalesced into a formidable barrier to repel cyber-criminals. We have continued to fine-tune our review of personal income tax returns, which has reduced the number of Ohioans who need to take the I.D. quiz to confirm their identity before receiving a tax refund. Regardless of whether you’re directed to take the quiz or not, remember that filing your return electronically is the fastest way to get your refund. If you do file online, and request direct deposit of your refund, the money should be in your bank account within 15 business days. There are a couple other changes this year that I’d like to mention. The business income deduction for 2016 has been increased to 100% of the first $250,000 of net business income from “pass-through” businesses or sole proprietorships. Income over that amount from these businesses will remain subject to a flat 3% tax rate. Also new this year, Ohio has added a deduction for contributions to Ohio’s STABLE account to help taxpayers who are caring for a disabled child or other designated disabled beneficiary. This deduction allows taxpayers to reduce their taxable gross income by up to $2,000 per beneficiary per year. I’d like to close by thanking all Ohio taxpayers for their time and diligence in filing their annual state income tax return. I trust that this instruction booklet will provide all the information you need to complete your return. If you have additional questions, however, please visit our Web site at tax.ohio.gov or call 1-800-282-1780 for taxpayer assistance. Respectfully, Joe W. Testa Ohio Tax Commissioner Our Mission "To provide quality service to Ohio taxpayers by helping them comply with their tax responsibilities and by fairly applying the tax law." The tax commissioner is looking for ideas on how the Ohio Department of Taxation can better serve taxpayers. Contact him at [email protected] -3- 2016 Ohio IT 1040 / Instructions Do You Need Tax Forms or Help? Visit Us on Our Web Site at tax.ohio.gov – Check the status of your 2016 Ohio income tax refund, get answers to the most frequently asked tax questions and download the most requested tax forms, publications, information releases, tax rules and statistics. For Form Requests – Visit our Web site at tax.ohio.gov to easily download our forms. You can also request forms by calling 1-800-282-1782, 24 hours a day. To Write or E-mail Us – You can write to us at the Ohio Department of Taxation, Taxpayer Services Division, P.O. Box 182382, Columbus, OH 43218-2382. You can also contact us through our Web site at tax.ohio.gov. Write or e-mail us if you are responding to a notice or a bill or if you want a written or e-mail response to a tax question. If you write requesting specific information about your account, be sure to include your SSN, full name and address. For General Tax Information – Visit our Web site at tax.ohio.gov or call our automated phone system toll-free at 1-800-282-1780. Our automated system is available 24 hours a day, seven days a week. Tax agents are also available to assist you Monday through Friday from 8 a.m. – 5 p.m. The tax commissioner is looking for ideas on how the Ohio Department of Taxation can better serve taxpayers. Contact him at [email protected] Walk In – The Ohio Department of Taxation's self-service visitor center is open Monday through Friday, 8 a.m. – 5 p.m. We are located at 4485 Northland Ridge Blvd., 1st Floor, Columbus, OH 43229-6596. For Law References About Income Taxes – To see the sections of the Ohio Revised Code that relate to the line items on Ohio IT 1040, go to our Web site at: Note: All self-service visitors must present a photo I.D. such as a current driver's license, state I.D., military I.D. or passport. http://tax.ohio.gov/lawreferences/2016pitlawreferences.stm Specialized Assistance VITA/TCE – The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) programs offer free tax help for taxpayers who qualify. For further information call 1-800-906-9887 or visit their Web site at: For Refund Status Information – You can check the status of your Ohio income tax refund at tax.ohio.gov or by calling 1-800-282-1784. You can also check your status from a smart phone by using the "Ohio Tax Mobile App," which can be downloaded through your phone's app store. More information can be found on our Web site under "Helpful Resources.” You will be required to provide your SSN, date of birth and the type of tax return. Refund processing of paper returns takes from eight to 10 weeks. However, if you file your paper return in mid-April, receiving your refund may take additional time. Generally, refund status information is available 24 hours a day. Occasionally, this information is not available due to system maintenance. In this case, try again later. http://www.irs.gov/Individuals/Free-Tax-Return-Preparation-forYou-by-Volunteers AARP – Trained and certified AARP tax aide volunteer counselors assist low- to middle-income taxpayers, with special attention to those age 60 and older. For further information, call 1-888-227-7669 or visit their Web site at: http://www.aarp.org/money/taxes/aarp_taxaide/ 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. -4- 2016 Ohio IT 1040 / Instructions Highlights for 2016 New STABLE Account: Ohio's ABLE Plan. Beginning with tax year 2016, HB 358 implements a new deduction line on Schedule A that allows Ohio taxpayers to deduct contributions to a STABLE account....................................................................See page 21 Business Income Deduction. For tax year 2016, the business income deduction on Ohio Schedule A of the Ohio IT 1040 income tax return will increase to 100% of the first $250,000 of net business income for single or married filing jointly returns and $125,000 for married filing separately. 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 jobs creators to further invest in growing their business.......................See page 21 New 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, corporation's, 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 Web site at tax.ohio.gov. individual line items on the IT 1040, as well as all lines/credits from Schedules B, C, D and E. Ohio Income Tax Tables. Ohio's individual income tax brackets have been indexed for inflation per Ohio Revised Code section 5747.025. Mobile App Available. Did you know that Ohio has created a mobile application for your smart phones and devices that will allow you to check the status of your refund? You can check your status by using the "Ohio Tax Mobile App," which can be downloaded through your device's app store. More information can be found on our Web site under "Helpful Resources.” Income Tax Online Services. Create a user name and password through our secure site so that you may: Electronically view outstanding tax liabilities and returns on file with the Ohio Department of Taxation. Electronically file tax returns and/or view them in pending status. For more information on these new services, as well as information on your electronic file and pay options, go to our Web site at tax.ohio.gov. Tax Forms. Beginning with the 2015 filing year, the Ohio IT 1040, IT 1040EZ and IT1040X 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 "Yes" on the amended return checkbox on page 1. All nonrefundable and refundable credits have been consolidated into an Ohio Schedule of Credits. The Ohio Schedule of Credits encompasses line items that were previously 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 eight to 10 weeks to process. -5- 2016 Ohio IT 1040 / Instructions Note: This booklet contains instructions for Ohio personal and school district income taxes. Follow the index tabbing as you see at the left of this page for the proper location of the instructions throughout the book. Table of Contents A I P Accident and health insurance premiums . for qualifying relatives........................ 26 Interest / penalties......... 12, 18, 51, 53, 54 Payment options...................................... 8 J Political contributions credit................... 29 Adoption credit...................................... 29 Allocation and apportionment of income...............................................12 Amended return instructions................. 58 B Business credits.................................... 31 C Child care and dependent care credit..................................................28 Joint filing credit..................................... 29 R L Residency status................................... 14 Line instructions for: IT 1040...............................................17 SD 100...............................................53 Lump sum distribution credit................. 27 Lump sum retirement credit................... 27 M College grants.......................................24 Mailing information.................................. 9 Correcting your return..................... 12, 52 Medical savings account........................... ...............................................12, 20, 26 D Deceased taxpayer............................... 12 Direct deposit options.............. Back cover Disability and survivorship benefits..............................................24 Displaced worker training credit............ 28 Donations........................................18, 35 Military Military injury relief fund......... 13, 23, 35 Resident Military personnel stationed ...... outside Ohio............................. 13, 22 Nonresident military servicemembers and their spouses.................... 13, 22 Resident credit........................................ 31 Retirement income credit........................ 27 S School district Business income deduction add-back ...........................................................55 Districts with a traditional tax base........ ..........................................50, 53, 54 Districts with an earned income tax base...................................50, 53, 55 Districts with an income tax for 2016 ................................................56, 57 General information........................... 50 Numbers by county.......................44-49 Senior citizen credit......................... 27, 53 Social Security and certain railroad retirement benefits.............................. 21 E Ohio National Guard and reserves ................................................13, 23 Earned income credit............................ 29 Ohio resident veterans bonus............ 13 Tax tables.........................................36-42 Electronic filing options........ 7, Back cover Ohio resident military personnel... 13, 22 Taxpayer assistance.............................. 59 Estimated tax payments................... 11, 52 Uniformed services retirement income ................................................13, 23 Tuition expenses / investments....... 20, 23 Exemptions............................................17 F Federal Privacy Act................................. 4 Filing requirements................................ 10 Finder....................................................43 Form........................................................4 H N Need more time to file..................... 10, 51 Nonresident / part-year resident credit or adjustments................... 31, 55 O Ohio National Guard deduction............. 23 Health care deductions.......................... 24 -6- T U Unemployment compensation............... 12 Use (sales) tax.......................... 18, 33, 34 W Who must file................................... 10, 50 Withholding forms...................... 15, 16, 54 2016 Ohio IT 1040 / Instructions Do's and Don'ts for Paper Tax Filers Read the instructions carefully and review your return before filing. To avoid a delay in processing your tax return, please . . . Make sure that you DO... Ì Check the full-year resident box on page 1 of Ohio IT 1040 if you qualify as "resident military personnel stationed outside Ohio" and you are taking the Ohio Schedule A, line 24, deduction. sure to enter the school district number for the taxable year for which you are filing your return. Ì Sign your tax return and place your W-2(s), W-2G(s) and/or 1099-R(s) after the last page of your return. Ì Include Ohio Schedule A, pages 1 and 2, if you are claiming Ì Ì Write legibly if you file a paper return. Be Ì Correct your address. If you use a tax preparer to file your return electronically, and you have moved since last year's filing, make sure that your current address is on file with the preparer. Ì Use the correct tax form for the year you are filing. And be any adjustments on Ohio IT 1040, line 2a (Additions), or line 2b (Deductions). Be sure to fill in the total lines for both additions and deductions of this schedule and send in all pages of the return. Ì Include Ohio Schedule of Credits, pages 1 and 2, if you are Protect yourself from identity theft by doing the following: Protect your SSN. careful if choosing a tax preparer to file your taxes. identity theft immediately to the Ohio Department of Taxation (800-282-1780) and IRS (800-908-4490). – If you are an identity theft victim, see our Web site at tax.ohio.gov and the IRS’ Web site at www.irs.gov for more information. claiming any nonrefundable credits/grants on Ohio IT 1040, line 9, or any refundable credits on line 16. Be sure to fill in lines 34, nonrefundable credits/grants, and line 41, refundable credits, for this schedule and send in all pages of the return. Report Ì Include Ohio Schedule J if you are claiming any dependents on Ohio IT 1040, line 4, personal and dependent exemption deduction. Make sure that you DON'T... Ó Use the Ohio IT 40P voucher to pay your school district income Ó Use the SD 40P voucher to pay your individual income tax due tax due (instead, use the SD 40P). (instead, use Ohio IT 40P). Ó Staple W-2(s), W-2G(s), 1099-R(s) checks and/or forms to your return. Go Paperless This Year: Have You Considered Filing Electronically? Electronic filing has become the preferred method used by taxpayers, with more than 87% of all Ohio income tax returns filed electronically for taxable year 2015. The electronic options available for filing a 2016 income tax return are: Online Services/Ohio I-File Use your computer to file your Ohio individual and/or school district income tax returns. Ohio I-File is a free filing service that guides you through a series of questions and information requests. Based upon the information you provide, I-File computes your refund or balance due, electronically submits the tax information, provides you with a copy, gives you a filing confirmation number and directs you to the electronic payment options. See Online Services at tax.ohio.gov. IRS e-file Use your tax software to file your tax returns or ask your tax preparer for assistance. IRS e-file is a way to prepare and file your return electronically with the IRS and Ohio. More nic information, including a free federal e-filing ctro e t ele program for qualified individuals, is availMos s receiv in s ler d fi n u able at www.irs.gov. You can also e-file y 15 r ref thei ximatel by through an approved, commercially availro ys a p d p a s sit! ines able software program or you can have bus ct depo e r i d your return prepared and transmitted by an authorized tax professional. You may be required to pay fees to use these private services. -7- 2016 Ohio IT 1040 / Instructions Payment Options for Ohio Personal and School District Income Tax Several options are available for paying your Ohio and/or school district income tax. If you are remitting for both Ohio and school district income taxes, you must remit each payment as a separate transaction. When paying by credit card, complete the following worksheet before contacting Official Payments. 1. Ohio jurisdiction code 6 4 4 6 By law, all tax is due on April 18, 2017 except for certain members of the military. 2. Amount you are paying (round to the nearest whole dollar) While the Ohio Department of Taxation is not authorized to set up payment plans, if you submit partial payments they will be applied to the outstanding balance. Partial payments will not stop the imposition of additional interest and penalties. Partial payments will also not stop our billing process from progressing, including possible referral of the account to the Ohio Attorney General's Office for collection; however, partial payments will reduce the amount of interest and penalties that you will be charged. $ , .0 0 (For your Ohio IT 1040, if applicable.) .0 0 (For your Ohio SD 100, if ap- $ , plicable.) 3. Your school district number (if applicable) 4. Your SSN You may pay by any one of the following three methods: Credit Card 5. The first three letters of your last name You may use your Discover, VISA, MasterCard or American Express card to pay your income taxes. You may make the credit card payments by either visiting tax.ohio.gov or calling 1-800-2PAY-TAX (1-800-272-9829). The Ohio jurisdiction code is 6446. 6. Your spouse's SSN (only if joint return) Whether you visit our Web site or pay by telephone, Official Payments will provide the credit card services. Official Payments will bill your credit card account a convenience fee equal to 2.5% (or $1, whichever is greater) of the tax payment. The state of Ohio and your school district do not receive any portion of this fee. 7. The first three letters of your spouse's last name (only if joint return) 8. The taxable year for which you are paying When will my payment be posted? Your payment will be effective the date you charge it. 2 0 1 6 9. Telephone number What happens if I change my mind? If you pay your tax liability by credit card and you subsequently reverse the credit card transaction, you may be subject to penalties, interest and other fees imposed by the Ohio Department of Taxation for nonpayment or late payment of your tax liability. ( ) 10. Your credit card number Whom should I call if I have a problem with my credit card payment? Call Official Payments toll-free at 1-866-621-4109. How do I use my credit card and my telephone to pay my Ohio and/or school district income tax? Once you have determined how much you owe, follow the steps below: 11. Credit card expiration date (MM/YY) / 12. ZIP code for the address where your credit card bills are sent Complete lines 2 through 12 on this page; Use your touch-tone telephone to call toll-free 1-800-2PAY-TAX 13. At the end of your call or Internet visit, you will be given a payment confirmation number. Write it here and keep this page for your records. (1-800-272-9829). When prompted, enter the Ohio jurisdiction code, 6446. How do I use my credit card and the Internet to pay my Ohio and/or school district income tax? Once you have determined how much you owe, follow the steps below: (Confirmation number for Ohio IT 1040, if applicable.) Complete lines 2 through 12 on this page; (Confirmation number for Ohio SD 100, if applicable.) Keep this page for your records. Go to www.officialpayments.com. Select "State Payments" and enter the Ohio jurisdiction code, 6446. Or you may visit Online Services on our Web site at tax.ohio.gov. Electronic Check You can eliminate writing a check for your Ohio and/or school district income tax due amount(s) by using the free, expanded electronic -8- 2016 Ohio IT 1040 / Instructions Payment Options for Ohio Personal and School District Income Tax...cont. check payment option that is available to all taxpayers. If you make a payment using an electronic check, it is the equivalent of using a debit card to withdraw money directly from your checking or savings account. The authorized amount will be withdrawn from your account within 24 hours unless you elect to delay payment. You can delay payment until the payment deadline of April 18, 2017. software program, follow the payment instruction prompts for making payments by electronic check. Paper Filing – If you are filing by paper (Ohio IT 1040 and/or SD 100), you can still use the electronic check payment option. Go to our Web site at tax.ohio.gov. You may also file and pay your quarterly 2017 Ohio and/or school district estimated income tax with the electronic check method. Go to our Web site at tax.ohio.gov. When paying by electronic check, you must first determine your filing method: Paper Check or Money Order Ohio I-File – Follow the payment instruction prompts that you receive during Ohio I-File. IRS e-file – If you are electronically filing your Ohio individual and/or school district income tax return using an approved If you do not want to use a credit card or electronic check to make your payment, you may send in a personal check or money order with the Ohio IT 40P / IT 40XP payment voucher for your Ohio income tax and/or SD 40P / SD 40XP payment voucher for your school district income tax. Both of these vouchers can be found on our Web site at tax.ohio.gov. Where Should I Mail My Return and/or Payment? See the chart below for mailing information. Be sure to sign your return before mailing. If you are enclosing a payment with your return, be sure to enclose Ohio IT 40P / IT 40XP or SD 40P / SD 40XP (found on our Web site at tax.ohio.gov) with your check or money order. This will ensure proper crediting of your 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 (enclose 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 SD 100...with payment (enclose SD 40P / SD 40XP) Ohio Department of Taxation P.O. Box 182389 Columbus, OH 43218-2389 If Only Submitting Payment With Voucher... Mail To: IT 40P / IT 40XP Ohio Department of Taxation P.O. Box 182131 Columbus, OH 43218-2131 SD 40P / SD 40XP Ohio Department of Taxation P.O. Box 182389 Columbus, OH 43218-2389 -9- 2016 Ohio IT 1040 / Instructions Filing Requirements Who Must File an Ohio Income Tax Return? Every Ohio resident and every part-year resident (see page 14 for a discussion of "residency status") is subject to the Ohio income tax. Every nonresident having Ohio-sourced income must also file. Examples of Ohio-sourced income include the following: Wages earned in Ohio (see "Exception" below); Ohio lottery winnings; All 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. Exception: A full-year nonresident living in a border state does not have to file if the nonresident's only Ohio-sourced income is wages received from an unrelated employer. You do not have to file an Ohio income tax return if... you are single and your federal adjusted gross income is less than or equal to $12,250 and you have no Ohio Schedule A adjustments. you are married, filing jointly and you are not claimed as a dependent on another return and your federal adjusted gross income is less than or equal to $14,500 and you have no Ohio Schedule A adjustments. your exemption amount (Ohio IT 1040, line 4) is the same as or more than your Ohio adjusted gross income (line 3). your only source of income is retirement income that is eligible for the retirement income credit (Ohio Schedule of Credits, line 2) and the credit is the same or larger than your tax before credits (Ohio IT 1040, line 8c). When Do I Have To File? to prepare your return. Keep these records for at least four years from the later of the filing due date or the date that you filed the return. If the Ohio Department of Taxation audits your tax return, you must be able to prove all claims and items listed on your return. What If I Need More Time To File? If you need more time to file, you can extend the due date for filing. You must first qualify for an IRS extension of time to file. Ohio does not have an Ohio extension request form, but honors the IRS extension. You should include with the Ohio income tax return a copy of your IRS extension or your extension confirmation number or a printed copy of the IRS acknowledgment. Additionally, you should check the box on the Ohio IT 1040 indicating that you have filed the federal extension 4868. An extension of time to file does not extend the time for payment of the tax due. So, except as set forth below, you must make extension payments by April 18, 2017 on Ohio IT 40P (available on our Web site at tax.ohio.gov). Interest will accrue on any tax not paid by April 18, 2017, and penalties may also apply. How Do I Round to the Nearest Dollar? Ohio law requires you to round to the nearest whole dollar. When completing the Ohio income tax return, drop any cents less than 50 cents and increase amounts from 50 cents to 99 cents to the next highest dollar. Do Both Nonresident, Married Filing Jointly Taxpayers Have To Sign the Return? General Rule: If your filing status on your federal income tax return is married filing jointly, then both spouses must sign the Ohio income tax return (see "Filing Status" on page 14 for more information about your filing status for your Ohio income tax return). What Tax Records Do I Need To Keep? Exception to the General Rule: Your spouse does not have to sign a married filing jointly return only if all three of the following apply: Your spouse resided outside Ohio for the entire year; AND Your spouse did not earn any income in Ohio; AND Your spouse did not receive any income in Ohio. Keep a copy of your completed Ohio income tax return. Also keep copies of any documents and/or payment records that you used See Ohio Administrative Code (Ohio Rule) 5703-7-18, which is on our Web site at tax.ohio.gov. For calendar year 2016 most taxpayers must file on or before April 18, 2017 (for exceptions, see "What if I Need More Time To File?" above and "Income Taxes and the Military" on page 13). Even if you are unable to pay the full amount of tax, you must file your return by the due date. - 10 - Do I Have To File a School District Income Tax Form? Many Ohio school districts have an additional income tax. These school districts are marked with an asterisk (*) on pages 44-49. If during 2016 you were a full-year or part-year Ohio domiciliary and you were domiciled in one of these districts during all or part of the year, then by the due date for filing your Ohio income tax return you must also file an SD 100, School District Income Tax Return, with the Ohio Department of Taxation. You can electronically file your school district return or you can get the SD 100 from our Web site at tax.ohio.gov, or by calling toll-free 1-800-282-1782. Do I Need To Enclose a Copy of My Federal Income Tax Return? Enclose a copy of your federal income tax return if the amount shown on Ohio IT 1040, line 1 is zero or a negative amount. Does Ohio Follow the Alternative Preparer Signature Procedures? The Ohio Department of Taxation follows federal Notice 2004-54, which provides for alternative preparer signature procedures for federal income tax paper returns that paid practitioners prepare on behalf of their clients. See Ohio Revised Code sections 5703.262(B) and 5747.08(F). Exception: The paid preparer should print (rather than sign) his/her name and include their Preparer Tax Identification Number (PTIN) on the form if the taxpayer checks “Yes” to the question, “Do you authorize your preparer to contact us regarding this return?” Preparers should provide their PTIN on the paper and/or electronically filed returns if available. Can My Tax Preparer Contact the Tax Department About My Tax Return? Yes. Just check the "Yes" box below your tax preparer's name on the bottom of page 2 of Ohio IT 1040. By checking the "Yes" box, you are authorizing your preparer to contact the Ohio Department of Taxation concerning questions that arise during the processing of your Ohio income tax return. Checking "Yes" also authorizes your preparer to provide the department with information that is missing from the return, to contact the department for information about 2016 Ohio IT 1040 / Instructions the processing of the return or the status of your refund or payments, and to respond to mathematical error notices, offsets and return preparation notices that you have received from the department and have shown your preparer. Should I Make Estimated Tax Payments in 2017? You have to make estimated Ohio income tax payments for year 2017 only if the sum of (i) your year 2016 overpayment credited to year 2017 (Ohio IT 1040, line 25) and (ii) your year 2017 Ohio income tax withholding is not equal to or greater than either of the following: 100% of the year 2016 Ohio income tax (see Ohio IT 1040, line 10 minus line 18); OR 90% of the year 2017 tax. For purposes of these tests, you must reduce your year 2016 overpayment credited to year 2017 by any year 2016 tax payment that you made after April 18, 2017. If you don't meet either of the tests above, you must timely pay enough estimated Ohio income tax so that the sum of (i) your year 2016 overpayment credited to year 2017, (ii) your year 2017 withholdings and (iii) your timely made estimated Ohio income tax payments is not less than either of the two tests above. If you are required to make estimated payments and do not, you may be subject to an interest penalty on your underpayment of estimated taxes. Quarterly estimated payments can be made electronically on our Web site at - 11 - tax.ohio.gov. Or you can obtain Ohio IT 1040ES from our Web site at tax.ohio.gov. 2017 Estimated Tax Payment Due Dates 1st quarter – April 18, 2017 2nd quarter – June 15, 2017 3rd quarter – Sept. 15, 2017 4th quarter – Jan. 16, 2018 TIP – If you don't want to make estimated payments, increase the amount of Ohio tax that your employer withholds from your wages. To do this, file a revised Ohio IT 4, Employee's Withholding Exemption Certificate (available at tax.ohio.gov) with your employer. 2016 Ohio IT 1040 / Instructions General Information for Ohio IT 1040 Is Unemployment Compensation Taxable to Ohio? In general, unemployment compensation that is included in federal adjusted gross income is taxable to Ohio. For taxable year 2016, the total unemployment compensation paid to you in 2016 and included in federal adjusted gross income is taxable. For additional information, see the FAQs on our Web site at tax.ohio.gov. Can Dependent Children Claim Themselves if They File Their Own Tax Return? No. Children being claimed as dependents on their parents' Ohio income tax return may no longer claim the personal exemption on their own return. What if a Taxpayer Is Deceased? The taxpayer's personal representative has to file and sign the return on behalf of the taxpayer who died. A personal representative can be the executor, administrator or anyone who is in charge of the deceased taxpayer's property. Important: Use the same filing status as shown on the federal income tax return. Check the "Deceased" box after the applicable SSN on Ohio IT 1040, page 1. If you are filing on behalf of a deceased taxpayer, you can properly sign on his/ her behalf by signing the deceased taxpayer's name on the "Your signature" line. Sign your name on the "Spouse's signature" line and print your title. Also include your daytime telephone number. We cannot rewrite a decedent's refund check by making it payable to the estate of the decedent. How Should Full-Year Nonresidents and Part-Year Residents Engaged in Business in Ohio Apportion Income? Each full-year nonresident and each partyear resident who is engaged in business (as a sole proprietor or through a partnership, S corporation or limited liability company) in Ohio must apportion his/her business income inside and outside of Ohio. If you file Ohio IT 1040, use Ohio IT NRC (income allocation and apportionment schedule) from our Web site at tax.ohio.gov to determine the proper amount of credit to claim on the Ohio Sched- ule of Credits. See page 14 for an explanation of "residency status." est charged generally will apply if you do not pay the tax by April 18, 2017. What if I Move After Filing My Tax Return and I'm Due a Refund? An additional $50 bad-check charge may be imposed against any taxpayer whose payment is dishonored by the bank. If you move after filing your tax return and are expecting a refund, notify the post office servicing your old address by filling out a change-of-address form. This does not guarantee that your refund will be forwarded because post offices are not required to forward government checks. You should also notify our department of your address change. What if I Want a Receipt To Prove That I Paid? Your cancelled check or credit card statement can be used as proof of our receipt of your tax payment. If you make payment with a money order, be sure to keep a copy for your records. How Do I Correct My Income Tax Return After I Have Already Filed? Make any corrections to your return by filing an amended income tax return for the year that you are correcting. Mark “yes” on the amended return checkbox on Ohio IT 1040 to indicate when filing an amended return. The amended return should reflect the total of the new values rather than the change in value. To speed up the processing of your amended return: Include a copy of your W-2(s), W-2G(s) and 1099-R(s) if there was Ohio income tax withheld; AND Include documentation to support any adjustments to line items. If you correct your federal income tax return or if you are audited by the IRS, you must file an Ohio amended income tax return within 60 days of the final determination of the IRS correction. See page 58 for more information. The IRS notifies us of all changes it makes to your federal income tax return. CAUTION To avoid penalties, be sure to file your Ohio amended income tax return within 60 days of the final determination of the federal change. ! Do I Owe Penalties and Interest? A failure-to-file penalty, the greater of $50 per month up to a maximum of $500, or 5% per month up to a maximum of 50% of the tax, may be charged if you fail to file your Ohio income tax return by the due date. A failure-to-pay penalty of double the inter- 12 - Except for certain military servicemembers (see "Income Taxes and the Military" on page 13), interest is due from April 19, 2017 until the date the tax is paid. If you file your return after the due date and if you paid and/or will pay any tax after the due date, you owe interest unless your refund, if any, is greater than any tax you paid after the due date. Interest is due on late-paid tax even if the IRS has granted you a filing extension. The interest rate for calendar year 2017 is 4%. What Is the Difference Between Income Tax Table 1 and Income Tax Table 2? Income Tax Table 1, which begins on page 36, shows the tax amount for $50 increments of income. The tax is calculated on the midpoint income for all of the income in that $50 range. The tax amount listed on Income Tax Table 1 may be slightly lower or higher than the tax amount computed by using Income Tax Table 2, which is shown on page 42. How Should Investors in a Pass-Through Entity Report Income? A pass-through entity is a partnership, S corporation or limited liability company treated as a partnership or an S corporation for federal income tax purposes. Unless the exception below applies, each investor in any pass-through entity doing business in Ohio must file Ohio IT 1040. Exception: Such investors do not have to file Ohio IT 1040 if all of the following apply: The investor is a full-year nonresident; AND The pass-through entity files Ohio IT 4708, Pass-Through Entity Composite Income Tax Return, on behalf of the investor; AND The investor has no other Ohio-sourced income or, if the investor has other Ohiosourced income, and that income is also reported on another Ohio IT 4708. What Is a Medical Savings Account and What Are the Qualifications? A medical savings account is used to pay eligible medical expenses of the accountholder or the account-holder's spouse and/or 2016 Ohio IT 1040 / Instructions dependents. A medical savings account can be opened by or on behalf of a person that participates in a sickness and accident plan, a plan offered by a health maintenance organization or a self-funded, employersponsored health-benefit plan pursuant to the federal Employee Retirement Income Security Act. You must designate an administrator for the medical savings account at the time you open the account. Account-holders are generally permitted to withdraw the funds at any time for any reason. However, account administrators cannot return any funds deposited during the year of deposit except for reimbursement of eligible medical expenses. Any withdrawals for a nonqualifying medical purpose may result in increased Ohio taxes. An "eligible medical expense" includes any expense for a service rendered by or for an article, device or drug prescribed by a licensed health care provider or provided by a Christian Science practitioner. See page 26, line 33, for a more detailed explanation. Income Taxes and the Military State and federal income tax laws contain special provisions for members of the military and their families. Details on some of the major issues facing military families during the income tax filing season can be found below. For more details regarding income taxes and the military, visit our Web site at tax.ohio.gov. You can also reach us by e-mail at [email protected] Key Issues Ohio Resident Military Personnel Military pay and allowances for Ohio resident servicemembers who are stationed inside Ohio, and their spouses, will continue to be subject to Ohio individual income tax. These amounts will also be subject to school district income tax if the servicemember was domiciled in a taxing school district. For an additional explanation, see page 22. Resident Military Personnel Stationed Outside Ohio Although military pay earned while on active duty and stationed outside of Ohio is exempt from Ohio income tax and may be deducted to the extent that it is included in federal adjusted gross income, you are still required to file an Ohio personal income tax return. Ohio Revised Code section 5747.01(A) (24) provides that for taxable years beginning on and after Jan. 1, 2007, an Ohio resident servicemember can deduct active duty military pay and allowances that are included in federal adjusted gross income if those amounts are received for active duty service while the servicemember is stationed outside Ohio. The term "stationed" refers to an Ohio resident servicemember's permanent duty station. For purposes of this exemption, "permanent duty station" has the same meaning as specified in Ohio Revised Code 5103.20, Article II, Subparagraph (U), that is, it means the military installation where an active duty servicemember – or, concerning this exemption, an Ohio resident servicemember in the Ohio National Guard or military reserve forces – is currently assigned and is physically located under competent orders that do not specify the duty as temporary. Periods of training in which a servicemember, either individually or as part of a unit, departs from his/her permanent place of duty and then returns following the completion of the training, are not included in the definition of "stationed." However, periods of active duty outside Ohio for purposes other than training, or periods of training greater than 30 days outside Ohio, as described on page 22, qualify a servicemember for this exemption. For an additional explanation, see page 22. Nonresident Military Servicemembers and Their Spouses A November 2009 federal law exempts military spouses who are not residents of a state where they are living with their spouse from the income taxes of the state, provided they are a resident of the same state as their spouse. However, nonresident military and nonresident spouses serving in Ohio are strongly encouraged to file Ohio IT 10 each year to avoid a possible billing notice from the state of Ohio. You must also file by June 1, 2017, Ohio IT DA, Affidavit of Non-Ohio Residency/Domicile for Taxable Year 2016. Ohio IT 10 and the affidavit are available on our Web site at tax.ohio.gov. For an additional explanation, see page 22. Ohio National Guard and Reserves Ohio resident members of the Ohio National Guard and reserves are entitled to the deduction for military pay received while stationed outside the state, if eligible. Also, resident members of the Ohio National Guard and reserves are eligible for certain tax extensions and other benefits, if stationed in a combat zone. The uniformed - 13 - services military retirement pay received for Ohio National Guard and reserves service is also exempt from Ohio income taxes. For an additional explanation, see page 23. Uniformed Services Retirement Income Retirement pay received for service on military active duty or the Ohio National Guard or reserves, as well as pay received by a surviving spouse through the Survivor Benefit Plan, is exempt from the Ohio income tax. For an additional explanation, see page 23. Military Injury Relief Fund You do not have to include in federal adjusted gross income any military injury relief fund amounts you received on account of physical injuries or psychological injuries, such as post-traumatic stress disorder, if those injuries are a direct result of military action in Operation Iraqi Freedom or Operation Enduring Freedom. But you must include in federal adjusted gross income any other military injury relief fund amounts you received. These amounts are deductible for Ohio adjusted gross income. For an additional explanation, see pages 23 and 35. Ohio Resident Veterans Bonus You do not have to include in federal adjusted gross income any bonuses that the Ohio Department of Veterans Services paid to, or made on behalf of, resident veterans of the Persian Gulf, Afghanistan and Iraq conflicts during the taxable year. Payments that the state of Ohio makes under the Ohio Veterans Bonus Program are excludable from the recipient's federal adjusted gross income. Therefore, the taxpayer cannot deduct from Ohio adjusted gross income any portion of the bonus because no portion of the bonus is included in federal adjusted gross income. 2016 Ohio IT 1040 / Instructions Completing the Top Portion of Ohio IT 1040 How To Complete Your Income Tax Return Ohio IT 1040 has been designed for electronic scanning, which allows for faster processing with fewer errors. In order to avoid unnecessary delays caused by manual processing, taxpayers should use the following guidelines: 1. Use black ink ONLY. 2. Use this form ONLY for the taxable year 2016. 3. Round numbers to the nearest dollar. Do not print over the preprinted zeros in the boxes on the far right of the return, which designate cents (.00). 4. Print your numbers and letters (UPPERCASE only) inside the boxes as shown below: 123 ANY ST R EET If the boxes don't appear on your return, do not hand-draw the boxes. Amended Return Check Box. Mark the “Yes” box if you are amending your previously filed return and include the 2016 Ohio IT RE, Reason and Explanation of Corrections, with your amended income tax return. Otherwise, mark “No.” Net Operating Loss (NOL). Mark the “Yes” box if you are amending for an NOL and include Ohio Schedule IT NOL with your income tax return. Otherwise mark “No.” Name(s), Address and SSN(s). Enter your name and address on page 1 and your SSN on pages 1 and 2 of your return (if married filing jointly, also enter your spouse's name and SSN on page 1). Ohio School District Number. Every Ohio public school district has an identification number. These numbers are listed on pages 44-49. Look up the number for the school district in which you were domiciled for the majority of the year and write it in the space provided. Nondomiciliaries should enter 9999. If you were domiciled in a taxing school district during 2016, you are required to file the SD 100. If you are unsure of your Ohio school district, use The Finder on our Web site as described on page 43. County If your home address is an Ohio home address, indicate on page 1 of the return the county for that address. Ohio Residency Status If your filing status is married filing jointly, each spouse must indicate his/her residency. Resident. Mark this box if you were a resident of Ohio all year. If you were away temporarily, you were a full-year resident of Ohio. Mark this box if you qualify as "resident military personnel stationed outside Ohio" and you are taking the deduction on Ohio Schedule A, line 24. Part-year Resident. Mark this box if you permanently moved into or out of Ohio during 2016, not counting being away temporarily. Part-year residents should use the nonresident credit on the Ohio Schedule of Credits for income earned while they were a resident of another state. Nonresident. Mark this box if you resided outside of Ohio all year. Write the two-letter abbreviation of the state where you resided for 2016 in the space provided. For more information, see our information release dated Sept. 17, 2015, "Personal Income Tax: Residency Guidelines," which is available on our Web site at tax.ohio.gov. Nonresidents who earn and receive all income outside of Ohio will not have an Ohio tax liability. 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. Military Personnel. If you are currently a member of the military and you have questions about your residency status, see page 13 for a detailed explanation regarding some of the key issues facing military families during the income tax filing season. - 14 - Filing Status Your filing status must be the same as your federal income tax filing status for 2016 with the following exception: If you marked the box labeled "Qualifying widow(er) with dependent child" on your federal income tax return, then mark the "Single, head of household or qualifying widow(er)" box on your Ohio income tax return. If you and your spouse filed a joint federal income tax return, you must file a joint Ohio income tax return. Even CAUTION if you are both Ohio nonresidents, if you filed a joint federal income tax return, you must file a joint Ohio income tax return, but you may claim the nonresident credit (Ohio Schedule of Credits) for income neither earned nor received in Ohio. If you and your spouse filed separate federal income tax returns, you must file separate Ohio income tax returns. ! Ohio Political Party Fund The Ohio General Assembly established this fund to support public financing of Ohio political parties. Monies from this fund can only be used for administrative costs associated with party headquarters and party fund-raising drives, organization of voter registration and get-out-the-vote campaigns not related to any particular candidate or election. If your filing status is single, head of household, qualifying widow(er) or married filing separately and your tax (Ohio IT 1040, line 13) is $1 or more, you can choose to have $1 go to this fund by checking the "Yes" box on the return. If your filing status is married filing jointly and your tax (Ohio IT 1040, line 13) is $2 or more, each of you can choose to have $1 go to this fund by checking the "Yes" boxes on the return. Checking "Yes" will neither increase the tax due nor reduce the refund shown on your return. 2016 Ohio IT 1040 / Instructions Sample W-2 – This form reports taxpayers' wages and withholding See "Ohio Income Tax Withheld" on page 18 of these instructions. Place all W-2 documents after the last page of your Ohio IT 1040. Do not staple or otherwise attach. 22222 Box b – Employer identification number a Employee’s social security number OMB No. 1545-0008 b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld c Employer’s name, address, and ZIP code 3 Social security wages 4 Social security tax withheld 5 Medicare wages and tips 6 Medicare tax withheld 7 Social security tips 8 Allocated tips XX-XXXXXXX 9 d Control number e Employee’s first name and initial 10 Dependent care benefits Suff. 11 Nonqualified plans Last name 13 Statutory employee Retirement plan 12a C o d e Third-party sick pay 12b C o d e 14 Other 12c C o d e 12d Box 15 – If this shows a state other than OHIO or OH, do not include the amount in box 17 as part of your Ohio income tax withholding. C o d e f Employee’s address and ZIP code 15 State OH Form Box 16 – Your state wages, tips, etc. Employer’s state ID number XX-XXXXXX W-2 16 State wages, tips, etc. $ XX,XXX.XX Wage and Tax Statement 17 State income tax $ X,XXX.XX 18 Local wages, tips, etc. 20 Locality name Department of the Treasury—Internal Revenue Service 2016 Copy 1—For State, City, or Local Tax Department 19 Local income tax Box 17 – Your state income tax withholding Box 19 – Do not include this amount as part of your Ohio income tax withholding. Sample W-2G – This form reports taxpayers' gambling winnings/withholding See "Ohio Income Tax Withheld" on page 18 of these instructions. Place all W-2G documents after the last page of your Ohio IT 1040. Do not staple or otherwise attach. VOID Box 1 – Your gross winnings CORRECTED PAYER’S name, street address, city or town, province or state, country, and ZIP or foreign postal code 1 Gross winnings $$ 2 Date won OMB No. 1545-0238 4 Federal income tax withheld Form W-2G XX,XXX.XX 3 Type of wager $ PAYER’S federal identification number Payer's federal identification number Box 13 – If this shows a state other than OHIO or OH, do not include the amount in box 15 as part of your Ohio income tax withholding. PAYER'S telephone number 5 Transaction 6 Race 7 Winnings from identical wagers 8 Cashier 2016 Certain Gambling Winnings $ 9 Winner’s taxpayer identification no. 10 Window XX-XXXXXXX WINNER’S name 11 First I.D. 12 Second I.D. Street address (including apt. no.) 13 State/Payer’s state identification no. 14 State winnings OH XX-XXXXXX City or town, province or state, country, and ZIP or foreign postal code 15 State income tax withheld $ $ X,XXX.XX 16 Local winnings $ 17 Local income tax withheld Box 15 – Your state income tax withholding $ Copy 1 For State, City, or Local Tax Department 18 Name of locality $ Under penalties of perjury, I declare that, to the best of my knowledge and belief, the name, address, and taxpayer identification number that I have furnished correctly identify me as the recipient of this payment and any payments from identical wagers, and that no other person is entitled to any part of these payments. Signature a Date a Form W-2G www.irs.gov/w2g - 15 - Department of the Treasury - Internal Revenue Service 2016 Ohio IT 1040 / Instructions Sample 1099-R – This form reports taxpayers' retirement/pension income/withholding See "Ohio Income Tax Withheld" on page 18 of these instructions. Place all 1099-R documents after the last page of your Ohio IT 1040. Do not staple or otherwise attach. VOID CORRECTED PAYER’S name, street address, city or town, state or province, country, and ZIP or foreign postal code $ Box 1 or 2a – Your taxable distribution OMB No. 1545-0119 1 Gross distribution $ XX,XXX.XX 2016 2a Taxable amount $ $ XX,XXX.XX Form 2b Taxable amount not determined Payer's federal identification number PAYER’S federal identification number RECIPIENT’S identification number 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Total distribution 3 Capital gain (included in box 2a) 4 Federal income tax withheld XX-XXXXXXX $ $ 5 Employee contributions RECIPIENT’S name /Designated Roth contributions or insurance premiums $ 6 Net unrealized appreciation in employer’s securities $ 7 Distribution code(s) Street address (including apt. no.) Copy 1 For State, City, or Local Tax Department IRA/ SEP/ SIMPLE 8 Other $ City or town, state or province, country, and ZIP or foreign postal code 9a Your percentage of total distribution Box 12 – Your state income tax withholding 10 Amount allocable to IRR within 5 years FATCA filing 11 1st year of desig. Roth contrib. requirement $ $ $ $ $ Form 1099-R $ X,XXX.XX 15 Local tax withheld Account number (see instructions) Box 13 – If this shows a state other than OHIO or OH, do not include the amount in box 12 as part of your Ohio income tax withholding. 12 State tax withheld www.irs.gov/form1099r Box 15 – Do not include this amount as part of your Ohio income tax withholding. - 16 - % % 9b Total employee contributions $ 13 State/Payer’s state no. 14 State distribution OH XX-XXXXXX 16 Name of locality $ $ 17 Local distribution $ $ Department of the Treasury - Internal Revenue Service 2016 Ohio IT 1040 / Instructions Line Instructions for Ohio IT 1040 Enter the amount from your 2016 federal income tax return: Federal 1040, line 37; OR Federal 1040A, line 21; OR Federal 1040EZ, line 4; OR Federal 1040NR, line 36; OR Federal 1040NR-EZ, line 10 In all cases, line 1 of your Ohio income tax return must match your federal adjusted gross income as defined in the InCAUTION ternal Revenue Code. Federal adjusted gross income includes, but is not limited to, wages, salaries, commissions, gambling income, interest, dividends, business income, capital gains/losses, pensions, rents and miscellaneous income. Failure to report all items of income may result in the application of a penalty. ! 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 federal 1040, 1040A, 1040EZ, 1040NR, 1040NR-EZ or 1042-S or equivalent with your Ohio IT 1040 return. Nonresident Taxpayers. If you and/or your spouse are not residents of Ohio and your filing status for federal income tax purposes is married filing jointly, then you must show the same adjusted gross income as on your federal income tax return. You must show this amount even if you or your spouse did not earn or receive any income in Ohio. See Ohio Administrative Code (Ohio Rule) 5703-7-18, which is on our Web site at tax.ohio.gov. Line 2a – Ohio Adjustments (Additions) Ohio Schedule A lists the additions to your federal adjusted gross income. See pages 20-21 in this booklet to read about the adjustments you may be required to make. 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 Ohio Schedule A line item(s). Copy the total additions amount from Ohio Schedule A, line 10, to Ohio IT 1040, line 2a. Line 2b – Ohio Adjustments (Deductions) Ohio Schedule A lists the deductions to your federal adjusted gross income. See pages 21-26 in this booklet to read about the adjustments you must make. 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 Ohio Schedule A line item(s). Copy the total deductions amount from Ohio Schedule A, line 35, to Ohio IT 1040, line 2b. Line 4 – Personal and Dependent Exemptions You may claim a personal exemption amount for yourself and, if filing a joint return, your spouse can claim an additional exemption amount. The personal and dependent exemption is a graduated amount based on your Ohio adjusted gross income. See chart below: Ohio Adjusted Gross Income Personal/ Dependent Exemption $40,000 or less $2,250 More than $40,000, but not more than $80,000 $2,000 More than $80,000 $1,750 Dependent Exemptions. Ohio allows a dependent exemption for dependent children and persons other than yourself and your spouse to whom you provide support and claim on your federal tax return. Note: You must complete Ohio Schedule J to take advantage of the dependent exemption. The form can be found at tax.ohio.gov. Multiply the appropriate exemption amount from the chart above by the number of personal/dependents you are claiming on the return. What Personal and Dependent Exemption Can I Claim? You must claim the same number of personal and dependent exemptions on your Ohio return that you claimed on your federal income tax return. Note: Children being claimed as dependents on their parents' Ohio income tax return may no longer claim the personal exemption on their own return. Locate your Ohio adjusted gross income on the chart above and multiply the number of personal/dependents by the exemption amount on the table. Enter this number on line 4 of your income tax return. - 17 - Example: John and Mary file a joint tax return and claim their 17-year-old son Patrick as an exemption on their federal income tax return. John and Mary’s Ohio adjusted gross income is $75,000. Based on these facts, they claim three exemptions of $2,000 each on their return, for a total of $6,000 on line 4. Patrick works at the local grocery after school and will also file his own return. Since Patrick’s parents are taking the exemption for him, he will not be eligible for the exemption amount and will report $0 on line 4. Ohio Schedule J. You must complete and enclose Ohio Schedule J, Dependents Claimed on the Ohio IT 1040 Return, listing every dependent for whom you are claiming this exemption. Enter the first, middle and last name, SSN, dependent's relationship and birthdate of each dependent claimed for this exemption. If your dependent has an individual tax identification number (ITIN) or adopted taxpayer identification number (ATIN), enter that number in the boxes for the dependent's SSN. Verify the information submitted on Ohio Schedule J. If the dependent information is not provided, incomplete or contains errors, you may be asked for supporting documentation. Line 5 – Ohio Income Tax Base Subtract line 4 from line 3: Your exemption amount on line 4 may be more than your Ohio adjusted gross income on line 3. If so, enter -0- on lines 5 through 11. If you had Ohio income tax withheld or made an estimated or extension payment, you must complete and file this return to receive a refund of any overpayment. Note: If the amount on line 5 is $10,000 or less, you owe no tax. Be sure to enter the $88 credit on line 7 of the Ohio Schedule of Credits. Enter on line 9 the amount you show on Ohio Schedule of Credits, line 34, and include the schedule. Line 6 – Taxable Business Income Enter your taxable business income from Ohio Schedule IT BUS, line 13, on this line. If the amount is less than -0-, enter -0-. Line 8a – Tax on Line 7a Using the income tax tables on pages 36-42, calculate your tax on your Ohio income tax base less business income. Personal Income Tax Line 1 – Federal Adjusted Gross Income 2016 Ohio IT 1040 / Instructions If your nonbusiness taxable income is less than $100,000, your tax has been calculated for you as shown on Income Tax Table 1, or you can use Income Tax Table 2. If your nonbusiness taxable income is $100,000 or more, you must use Income Tax Table 2. Note: Income Tax Table 1 shows the tax amount for $50 increments of income and is calculated on the midpoint income for all of the income in that $50 range. The tax amount listed on Income Tax Table 1 may be slightly lower or higher than the tax amount computed by using Income Tax Table 2. Line 8b – Business Income Tax Liability Enter your business income tax liability from Ohio Schedule IT BUS, line 14, on this line. Line 9 – Nonrefundable Credits Enter your total nonrefundable credits from Ohio Schedule of Credits, line 34, on this line. Line 11 – Interest Penalty If line 10 minus line 14 and your 2015 overpayment credited to 2016 is $500 or less, enter -0- on line 11. If line 10 minus line 14 and your 2015 overpayment credited to 2016 is greater than $500, you may owe an interest penalty. You must complete Ohio IT/SD 2210 to determine if a penalty is due. This form is available on our Web site at tax.ohio.gov. Line 12 – Unpaid Use (Sales) Tax Use Ohio IT 1040, line 12 to report the amount of unpaid use (sales) tax, if any, that you may owe from out-of-state purchases that you made in 2016 (for example, mail order or Internet purchases). Complete the worksheet on page 34. A detailed explanation of the Ohio use tax is on page 33. If you did not make any out-of-state purchases during 2016, enter -0- on line 12. If you did make any out-of-state purchase during 2016 and paid no sales tax on that purchase, then you are required to complete the use tax worksheet on page 34 to determine the amount of Ohio use tax you owe (which is the sales tax on that purchase). Line 14 – Ohio Income Tax Withheld Enter the total amount of Ohio income tax withheld. This is normally shown on your tax statement form (W-2, box 17; W-2G, box 15; or 1099-R, box 12). See the sample W-2 and W-2G on page 15 and the sample 1099-R on page 16. Place legible state copies of your W-2(s), W-2G(s) or 1099-R(s) after the last page of Ohio IT 1040. Do not staple or otherwise attach. You cannot claim on the Ohio return any taxes withheld for another state, a city or a school district. You cannot claim on this line taxes withheld on your behalf by a pass-through entity. For proper reporting of taxes withheld on your behalf by a pass-through entity, see Ohio Schedule of Credits, line 37. Line 15 – Estimated and Extension Payments and Credit Carryforward From Previous Year Return Enter the total estimated income tax payments submitted with your 2016 Ohio IT 1040ES, extension payment(s) made with Ohio IT 40P plus any overpayment you credit
Income Tax Instructions
More about the Ohio Income Tax Instructions Individual Income Tax TY 2016
Use this printable booklet to help you fill out and file your income taxes. these instructions cover forms IT 1040, IT 1040EZ, Telefile and SD 100.
We last updated the Income Tax Instruction Booklet in December 2016, so this is the latest version of Income Tax Instructions, fully updated for tax year 2016. 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 1040||Ohio Individual Income Tax Return|
|Income Tax Instructions||Income Tax Instruction Booklet|
|Form IT 1040EZ||Ohio Individual Income Tax EZ Return|
|Schedule J||Dependents Claimed on the Ohio IT 1040 or IT 1040EZ Return|
|Form IT 1040X||Ohio Amended Individual Income Tax Return|
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 2016.
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 two 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.