Ohio Income Tax Instruction Booklet
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 April 2016, so this is the latest version of Income Tax Instructions, fully updated for tax year 2015. 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.
Extracted from PDF file 2015-ohio-income-tax-instructions.pdf, last modified January 2016
Income Tax Instruction Booklet• INSTRUCTIONS ONLY • NO RETURNS • INSTRUCTIONS ONLY • NO RETURNS • hio 2015 Instructions for Filing: • Personal Income Tax • School District Income Tax nline for ! 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 • 2015 Ohio IT 1040 / Instructions A Message From the Ohio Tax Commissioner Dear Ohio Taxpayers, I want to offer my sincere thanks for your assistance with our efforts to ﬁght the increase in attempted tax fraud in Ohio. The federal government and all states with an income tax continue to see an onslaught of fraudulent tax returns using stolen personal identiﬁcation information to try to illegally obtain tax refunds. Last year, Ohio intercepted a record number of fraudulent returns. We expect no let-up in this illegal activity and so we’ve strengthened our security efforts in coordination with the IRS, tax preparers and the banking community. This year, Ohio will again be using an Identity Conﬁrmation Quiz to help ensure that tax refunds are paid only to legitimate ﬁlers. The quiz is an invaluable tool, and we have incorporated changes that are designed to make the experience smoother for all those taxpayers asked to take the quiz. On an exciting note, the 2015 tax return reﬂects new tax cuts for most individuals and small business taxpayers. For individuals, tax rates have been reduced 6.3%. For many business owners and investors, the small business deduction has been enhanced to help them strengthen and grow their businesses. They will again be entitled to deduct 75% of the ﬁrst $250,000 of net business income and then for the ﬁrst time in Ohio, a ﬂat tax – with a low rate of 3% – will apply to business income above $250,000. The department is continuously looking for ways to simplify the personal income tax ﬁling process. This year, several tax forms have been revamped to make the process easier. The IT 1040, IT 1040EZ and amended IT 1040X forms have been combined into one Universal IT 1040 tax return. Likewise, the regular SD 100 and amended SD 100X school district forms became the Universal SD 100 tax return. We are encouraged that more than 86% of returns were ﬁled online last year and urge you to consider the beneﬁts of ﬁling electronically if you haven’t already made the switch from paper. Refunds are issued faster, errors are reduced, and processing costs are cut signiﬁcantly. We expect that this publication will give you all you need to successfully and easily prepare and ﬁle your return. However, if you still have questions, please visit our Web site at tax.ohio.gov or call 1-800-282-1780 for personal taxpayer assistance. The department also maintains a 24-hour refund hotline at 1-800-282-1784. Together, with your help, we will continue to make Ohio a better place to live and work. Sincerely, 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] -2- Back 2015 Ohio IT 1040 / Instructions Do You Need Tax Forms or Help? V Visit Us on Our Web Site at tax.ohio.gov – Check the status of your 2015 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. 24 hours a day. Occasionally, this information is not available due to system maintenance. In this case, please try again later. For Forms – Visit our Web site at tax.ohio.gov to easily download our forms. 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 W a notice or a bill or if you want a written or e-mail response to a tax question. If you write requesting speciﬁc e mail information about your account, be sure to include your Social Security number, 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. until 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 offers taxpayer assistance Monday through Friday, 8 a.m. – 5 p.m. We are located at 4485 Northland Ridge Blvd., 1st Floor, Columbus, OH 432296596. 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: Specialized Assistance http://tax.ohio.gov/lawreferences/2015pitlawreferences.stm 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 t 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 infort mation can be found on our Web site under "Helpful Resourcfoun es.” You will be required to provide your Social Security number, 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 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 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. -3- 2015 Ohio IT 1040 / Instructions Highlights for 2015 the amended return checkbox on page 1. All nonrefundable and refundable credits have been consolidated into an Ohio Schedule of Credits. The new Ohio Schedule of Credits encompasses line items that were previously individual line items on the IT 1040, as well as all lines/credits from Schedules B, C, D and E. Due to the new Ohio Schedule of Credits, Schedules B, C, D and E are no longer available for 2015 personal income tax ﬁling. The Ohio Schedule E is still available for pass-through entity ﬁlings. NEW Ohio Dependent Schedule. Ohio Schedule J is used to capture information on dependents being claimed on an Ohio income tax return. Beginning with the 2015 tax return, the dependent “relationship” has been added to the schedule. As of the 2014 return, dependents cannot claim a personal exemption if another taxpayer claims them on their return ........................... ....................................... See Ohio Schedule J on tax.ohio.gov NEW Business Income Deduction. For tax year 2015, the business income deduction on Ohio Schedule A of the Ohio IT 1040 income tax return will remain at 75%, continuing to free up additional funds for private sector jobs creators to further invest in growing their business ...........................................................................See page 20 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.” NEW Means Testing. The retirement income credit, lump sum retirement credit, senior citizen credit and lump sum distribution credit are now based on your adjusted gross income less exemption amount ................................................. See page 27 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. NEW Wishes for Sick Children Donation. A new donation has been added to the Ohio IT 1040 income tax return. Monies donated to the fund will be used to grant the wishes of children under the age of 18 who have been diagnosed with a life-threatening medical condition ................................................................ See page 36 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. NEW Tax Rate Reduction. The income tax rate has been reduced by 6.3% compared to the 2014 rates .................. See pages 37-43 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 30 days to process. NEW Tax Forms. Beginning with the 2015 ﬁling year, the Ohio IT 1040, IT 1040EZ and IT1040X forms are consolidated into one form, the Ohio Universal IT 1040. Likewise, the Ohio SD 100 and SD 100X forms are consolidated into one form, the Ohio Universal SD 100. To amend the return, taxpayers can simply mark "Yes" on -4- 2015 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 right of this page for the proper location of the instructions throughout the book. A I P Accident and health insurance premiums for qualifying relatives ....................... 25 Interest / penalties .................................... .......................... 11, 17, SD 2, SD 4, SD 5 Payment options ..................................... 7 Adoption credit...................................... 29 J Allocation and apportionment of income .............................................. 11 R Joint ﬁling credit .................................... 29 Residency status .................................. 13 L Personal Income Tax Table of Contents Resident credit ....................................... 32 B Business credits ................................... 33 C Child care and dependent care credit .................................................28 College grants ...................................... 23 Line instructions for: Retirement income credit ....................... 27 IT 1040 ..............................................16 S SD 100 ..........................................SD 4 School district Business income deduction add-back ......................................................SD 6 Lump sum distribution credit................. 27 Lump sum retirement credit .................. 27 Correcting your return................. 11, SD 3 M D Mailing information ................................. 8 Deceased taxpayer............................... 11 Medical savings account .......................... .............................................. 11, 19, 25 Direct deposit options ............. Back cover Political contributions credit .................. 29 Districts with an earned income tax base ...................... SD 1, SD 4, SD 6 Districts with an income tax for 2015 ........................................SD 7, SD 8 General information ...................... SD 1 Disability and survivorship beneﬁts .............................................23 Military injury relief fund ........ 12, 22, 36 Displaced worker training credit ........... 28 Resident Military personnel stationed ..... outside Ohio ............................ 12, 21 Senior citizen credit .................... 27, SD 4 Nonresident military servicemembers and their spouses ................... 12, 22 Social Security and certain railroad retirement beneﬁts ............................. 20 Ohio National Guard and reserves ................................................12, 22 T Donations .......................................18, 36 E Earned income credit............................ 29 Electronic ﬁling options ......6, Back cover Estimated tax payments............... 10, SD 3 Exemptions ...........................................16 F Federal Privacy Act.................................3 Filing requirements ................................. 9 Finder ...................................................44 Ohio resident veterans bonus ........... 12 Ohio resident military personnel .. 12, 21 Uniformed services retirement income ................................................12, 22 N Need more time to ﬁle .................. 9, SD 2 Numbers by county ......................45-50 Tax tables ........................................37-43 Taxpayer assistance ..... Inside back cover Tuition expenses / investments ...... 19, 23 U Unemployment compensation .............. 11 Use (sales) tax.......................... 17, 34, 35 W Form .......................................................3 Nonresident / part-year resident credit or adjustments............... 32, SD 6 Who must ﬁle ................................ 9, SD 1 H O Withholding forms ................. 14, 15, SD 5 Health care deductions ......................... 23 Ohio National Guard deduction ............ 22 -5- School District Income Tax Military Districts with a traditional tax base........ .............................. SD 1, SD 4, SD 5 Back 2015 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... Include Ohio Schedule J if you are claiming any dependents on Ohio IT 1040, line 4, personal and dependent exemption deduction. 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. 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. Correct your address. If you use a tax preparer to ﬁle your return Write legibly if you ﬁle a paper return. electronically, and you have moved since last year's ﬁling, make sure that your current address is on ﬁle with the preparer. Use the correct tax form for the year you are ﬁling. And be sure to enter the school district number for the taxable year for which you are ﬁling your return. When ﬁling the new Ohio IT 1040, include if applicable Ohio Schedule A, pages 1 and 2 and/or Ohio Schedule of Credits, pages 1 and 2 and/or Ohio Schedule J. Place any supporting documents or wage statements after the last page of your return. Include Ohio Schedule A, pages 1 and 2, if you are claiming 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. Protect yourself from identity theft by doing the following: Protect your Social Security number. Be careful if choosing a tax preparer to ﬁle your taxes. Report identity theft immediately to the Ohio Department of Taxation (800-282-1780) and IRS (800-908-4490). Include Ohio Schedule of Credits, pages 1 and 2, if you are – If you are an identity theft victim, see our Web site at tax.ohio.gov and the IRS’ Web site at 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 35, nonrefundable credits/grants, and line 41, refundable credits, for this schedule and send in all pages of the return. Make sure that you DON'T... Use the Ohio SD 40P voucher to pay your individual income Use the Ohio IT 40P voucher to pay your school district income tax due (instead, use Ohio SD 40P). tax due (instead, use Ohio IT 40P). 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 85% of all Ohio income tax returns ﬁled electronically for taxable year 2014. The electronic options available for ﬁling a 2015 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 ic information, including a free federal e-ﬁling tron elec ost receive program for qualiﬁed individuals, is availM in s ﬁler efunds 5 able at www.irs.gov. You can also e-ﬁle 1 r heir imately by t through an approved, commercially availprox s days ap sit! ines able software program or you can have bus ct depo ire d your return prepared and transmitted by an authorized tax professional. You may be required to pay fees to use these private services. -6- Back 2015 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 Corporation. 1. Ohio jurisdiction code 6 4 4 6 By law, all tax is due on April 18, 2016 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. $ , $ , (For your Ohio IT 1040, if applicable.) .0 0 .0 0 (For your Ohio SD 100, if applicable.) 3. Your school district number (if applicable) 4. Your Social Security number 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 Social Security number (only if joint return) Whether you visit our Web site or pay by telephone, Ofﬁcial Payments Corporation will provide the credit card services. Ofﬁcial Payments Corporation 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 5 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 Corporation toll-free at 1-866-621-4109. 11. Credit card expiration date (MM/YY) / 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: 12. ZIP code for the address where your credit card bills are sent Complete lines 2 through 12 on this page; 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. Use your touch-tone telephone to call toll-free 1-800-2PAY-TAX (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. Electronic Check 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. You can eliminate writing a check for your Ohio and/or school district income tax due amount(s) by using the free, expanded electronic check -7- Back 2015 Ohio IT 1040 / Instructions Payment Options for Ohio Personal and School District Income Tax...cont. 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. payment instruction prompts for making payments by electronic check. Paper Filing – If you are ﬁling by paper (Ohio IT 1040 and/or 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, 2016. Ohio SD 100), you can still use the electronic check payment option. Go to our Web site at tax.ohio.gov. When paying by electronic check, you must ﬁrst determine your ﬁling method: You may also ﬁle and pay your quarterly 2016 Ohio and/or school district estimated income tax with the electronic check method. Go to our Web site at tax.ohio.gov. Ohio I-File – Follow the payment instruction prompts that you Paper Check or Money Order receive during Ohio I-File. 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 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. IRS e-file – If you are electronically filing your Ohio individual income tax return and/or your school district income tax return using an approved software program, follow the 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 Ohio 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 -8- Back 2015 Ohio IT 1040 / Instructions Filing Requirements Who Must File an Ohio Income Tax Return? Every Ohio resident and every part-year resident (see page 13 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 $12,200 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 $14,400 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) and you have no Ohio Schedule A adjustments. 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? For calendar year 2015 most taxpayers must ﬁle on or before April 18, 2016 (for exceptions, see "What if I Need More Time To File?" on page 9 and "Income Taxes and the Military" on page 12). Returns for ﬁscal year ﬁlers are due on the 15th day of the fourth month following the close of your taxable year. Even if you are unable to pay the full amount of tax, you must ﬁle your return by the due date. What Tax Records Do I Need To Keep? Keep a copy of your completed Ohio income tax return. Also keep copies of any documents and/or payment records that you used 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 a federal extension form 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, 2016 on Ohio IT 40P (available on our Web site at tax.ohio.gov). Interest will accrue on any tax not paid by April 18, 2016, 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 13 for more information about your ﬁling status for your Ohio income tax return). 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 -9- Your spouse did not receive any income in Ohio. See Ohio Administrative Code (Ohio Rule) 5703-7-18, which is on our Web site at tax.ohio.gov. 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 45-50. If during 2015 you were a full-year or part-year Ohio domiciliary and you either lived in or 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 Ohio 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 Ohio SD 100 from our Web site at tax.ohio.gov, from your local school board ofﬁce 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 Back 2015 Ohio IT 1040 / Instructions 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 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 2016? You have to make estimated Ohio income tax payments for year 2016 only if the sum of (i) your year 2015 overpayment credited to year 2016 (Ohio IT 1040, line 25) and (ii) your year 2016 Ohio income tax withhold- ing is not equal to or greater than either of the following: 100% of the year 2015 Ohio income tax (see Ohio IT 1040, line 10 minus line 18); OR 90% of the year 2016 tax. For purposes of these tests, you must reduce your year 2015 overpayment credited to year 2016 by any year 2015 tax payment that you made after April 18, 2016. 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 2015 overpayment credited to year 2016, (ii) your year 2016 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. - 10 - Quarterly estimated payments can be made electronically on our Web site at tax.ohio.gov. Or you can obtain Ohio IT 1040ES from our Web site at tax.ohio.gov. 2016 Estimated Tax Payment Due Dates 1st quarter – April 18, 2016 2nd quarter – June 15, 2016 3rd quarter – Sept. 15, 2016 4th quarter – Jan. 17, 2017 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. Back 2015 Ohio IT 1040 / Instructions General Information for Ohio IT 1040 Is Unemployment Compensation Taxable to Ohio? amount of credit to claim on the Ohio Schedule of Credits. See page 13 for an explanation of "residency status." A failure-to-pay penalty of double the interest charged generally will apply if you do not pay the tax by April 18, 2016. In general, unemployment compensation that is included in federal adjusted gross income is taxable to Ohio. For taxable year 2015, the total unemployment compensation paid to you in 2015 and included in federal adjusted gross income is taxable. For additional information, see the FAQs on our Web site at tax.ohio.gov. 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. 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 Social Security number 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 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. The IRS tells us about 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. - 11 - Except for certain military servicemembers (see "Income Taxes and the Military" on page 12), interest is due from April 18, 2016 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 2016 is 3%. What Is the Difference Between Income Tax Table 1 and Income Tax Table 2? Income Tax Table 1, which begins on page 37, 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 43. 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, annual 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 dependents. A medical savings account Back 2015 Ohio IT 1040 / Instructions 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 25, 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 21. 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 21, qualify a servicemember for this exemption. For an additional explanation, see pages 13 and 21. 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, 2016, Ohio IT DA, Afﬁdavit of Non-Ohio Residency/Domicile for Taxable Year 2015. 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 - 12 - stationed in a combat zone. The uniformed 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 22. 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 22. 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 22 and 36. 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. Back 2015 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 2015. 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 school district, use The Finder on our Web site as described on page 44. Filing Status County Your ﬁling status must be the same as your federal income tax ﬁling status for 2015 with the following two exceptions: 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. 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 attach the 2015 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 attach Ohio Schedule IT NOL with your income tax return. Otherwise mark “No.” Name(s), Address and Social Security Number(s). Enter your name and address on page 1 and your Social Security number on pages 1 and 2. Ohio School District Number. Every Ohio public school district has an identiﬁcation number. These numbers are listed on pages 45-50. Look up the number for the Ohio 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 2015, you are required to ﬁle Ohio SD 100. If you are unsure of your Ohio Part-year Resident. Mark this box if you permanently moved into or out of Ohio during 2015, not counting being away temporarily. Part-year residents should use the nonresident credit in Ohio Schedule of Credits for income earned while they were a resident of another state. 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 Nonresident. Mark this box if you resided outside of Ohio all year. Write the two-letter abbreviation of the state where you resided for 2015 in the space provided. For more information, see our information release 2007-08 entitled "Personal Income Tax: Residency Guidelines," which is available on our Web site at tax.ohio.gov. 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. 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. 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. Military Personnel. If you are currently a member of the military and you have questions about your residency status, see page 12 for a detailed explanation regarding some of the key issues facing military families during the income tax ﬁling season. - 13 - Back 2015 Ohio IT 1040 / Instructions Sample W-2 – This form reports taxpayers' wages and withholding See "Ohio Income Tax Withheld" on page 17 of these instructions. Place all W-2 documents after the last page of your Ohio IT 1040. Do not staple or otherwise attach. 22222 a Employee’s social security number OMB No. 1545-0008 1 Wages, tips, other compensation b Employer identification number (EIN) 2 Federal income tax withheld 3 Social security wages 4 Social security tax withheld 5 Medicare wages and tips 6 Medicare tax withheld 7 Social security tips Box b – Employer identiﬁcation number 8 Allocated tips XX-XXXXXXX c Employer’s name, address, and ZIP code 9 d Control number e Employee’s first name and initial Last name 10 Dependent care benefits Suff. 11 Nonqualified plans 12a C o d e 13 Statutory employee Retirement plan 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 Form Box 16 – Your state wages, tips, etc. Employer’s state ID number 16 State wages, tips, etc. W-2 17 State income tax 18 Local wages, tips, etc. 2015 Wage and Tax Statement Copy 1—For State, City, or Local Tax Department 19 Local income tax 20 Locality name $ X,XXX.XX $ XX,XXX.XX XX-XXXXXX OH Department of the Treasury—Internal Revenue Service 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 17 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 2 Date won $$ OMB No. 1545-0238 4 Federal income tax withheld 1 Gross winnings Form W-2G 2015 XX,XXX.XX 3 Type of wager $ 5 Transaction 7 Winnings from identical wagers PAYER’S federal identification number Payer's federal identiﬁcation number PAYER'S telephone number 6 Race 8 Cashier $ 9 Winner’s taxpayer identification no. 10 Window XX-XXXXXXX WINNER’S name 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. Certain Gambling Winnings 11 First I.D. 12 Second I.D. Street address (including apt. no.) 13 State/Payer’s state identification no. 14 State winnings Copy 1 OH XX-XXXXXX $ City or town, province or state, country, and ZIP or foreign postal code 15 State income tax withheld For State, City, or Local Tax Department 16 Local winnings $ X,XXX.XX $ Box 15 – Your state income tax withholding $ 17 Local income tax withheld 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 Date Form W-2G www.irs.gov/w2g - 14 - Department of the Treasury - Internal Revenue Service Back 2015 Ohio IT 1040 / Instructions Sample 1099-R – This form reports taxpayers' retirement/pension income/withholding See "Ohio Income Tax Withheld" on page 17 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 OMB No. 1545-0119 1 Gross distribution $ XX,XXX.XX 2015 $ Box 1 or 2a – Your taxable distribution 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 $ RECIPIENT’S name $ 5 Employee contributions /Designated Roth contributions or insurance premiums $ Street address (including apt. no.) Copy 1 For State, City, or Local Tax Department 6 Net unrealized appreciation in employer’s securities $ 7 Distribution code(s) 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 11 1st year of desig. Roth contrib. 12 State 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. 15 Local tax withheld $ $ Form 1099-R $ X,XXX.XX www.irs.gov/form1099r Box 15 – Do not include this amount as part of your Ohio income tax withholding. - 15 - % % 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 Back 2015 Ohio IT 1040 / Instructions Personal Income Tax Line Instructions for Ohio IT 1040 Line 1 – Federal Adjusted Gross Income Enter the amount from your 2015 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 19-20 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 11 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 20-26 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. HB 483 implemented a change to the exemption amount claimed beginning with the 2014 tax return. The personal and dependent exemption is now a graduated amount based on your Ohio adjusted gross income. See chart below: Ohio Adjusted Gross Income Personal/ Dependent Exemption $40,000 or less $2,200 More than $40,000, but not more than $80,000 $1,950 More than $80,000 $1,700 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. Please multiply the appropriate exemption amount from the chart above by the number of personal/dependents you are claiming on the return. Ohio Schedule J. You must complete and enclose Ohio Schedule J, Dependents Claimed on the Ohio IT 1040 Return, listing every child for whom you are claiming this exemption. Enter the ﬁrst, middle and last name, Social Security number (SSN), dependent's relationship and birthdate of each child 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 - 16 - boxes for the dependent's Social Security number. Please 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. 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 adjacent chart 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. 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 $1,950 each on their return, for a total of $5,850 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. 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 any overpayment. Note: If the amount on this line 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 35 and attach the schedule. Line 6 – Taxable Business Income Enter your taxable business income from Ohio IT BUS, line 13 on this line. If the amount is less than -0-, enter -0-. Back 2015 Ohio IT 1040 / Instructions Line 8a – Tax on Line 7a Using the income tax tables on pages 37-43, calculate your tax on your Ohio income tax base less business income. 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 Using the Income Tax Table 3 found in the separate instructions for the Ohio IT BUS, calculate the tax on your business income. Enter your business income tax liability from line 14 of the Ohio IT BUS on this line. Line 9 – Nonrefundable Credits Enter your total nonrefundable credits and grants from Ohio Schedule of Credits, line 35 on this line. Beginning tax year 2015, Schedules B, C, D and E are consolidated into the Ohio Schedule of Credits. This new line reﬂects the amounts previously reported as individual items on the Ohio IT 1040, as well as on Schedules B, C, D and E. Line 11 – Interest Penalty If line 10 minus line 14 and your 2014 overpayment credited to 2015 is $500 or less, enter -0- on line 11. If line 10 minus line 14 and your 2014 overpayment credited to 2015 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 2015 (for example, mail order or Internet purchases). Complete the worksheet on page 35. A detailed explanation of the Ohio use tax is on page 34. If you did not make any out-of-state purchases during 2015, enter -0- on line 12. If you did make any out-of-state purchase during 2015 and if you paid no sales tax on that purchase, then you are required to complete the use tax worksheet on page 35 to determine the amount of Ohio use tax you owe (which is the sales tax on t
More about the Ohio Income Tax Instructions Individual Income Tax TY 2015
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|
|Form IT 1040X||Ohio Amended Individual Income Tax Return|
|Form IT-2210-1040||Income Tax Underpayment Form|
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 April 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!
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.