Ohio Individual Income Tax Instruction Booklet
Extracted from PDF file 2020-ohio-individual-tax-instructions.pdf, last modified December 2020
Individual Income Tax Instruction Booklet• INSTRUCTIONS ONLY • NO RETURNS • hio 2020 Instructions for Filing Original and Amended: • Individual Income Tax (IT 1040) • School District Income Tax (SD 100) hio Department of Taxation tax. hio.gov 2020 Ohio IT 1040 / SD 100 Table of Contents A Amended returns..................................... 7 B Business credits...............................20-22 Business income Business income deduction (IT BUS).... 18 Definitions and examples..................... 9 C College savings (Ohio 529 plan) Instructions........................................17 Worksheet..........................................30 D Deceased taxpayers................................ 6 Direct deposit options.............. Back cover Donations........................................ 11, 14 E Earned income credit............................ 20 Electronic filing options............ Back cover Estimated tax payments for 2021............ 6 Exemptions............................................13 F Filing extensions................................ 6, 12 Filing requirements.......................... 10, 46 H Highlights for 2020.................................. 4 I Individual credits...............................19-20 Income statements (W-2, 1099).......38-39 Interest and penalties...................... 14, 47 IT 1040 Completing the top portion................. 12 General information........................... 10 Line instructions............................13-14 Income tax rates and tables..........32-37 J Joint filing credit..................................... 20 L Lump sum credits Instructions........................................19 Worksheets........................................28 M Mailing addresses................................... 5 Medical & health care expenses Instructions........................................18 Worksheet..........................................27 Military..........................................8, 16-17 Modified adjusted gross income........ 6, 31 N Net operating loss (IT NOL)................... 49 Nonresident credit (IT NRC).............22-25 Nonresident statement (IT NRS)..... 12, 48 P Payment options...................................... 5 R Refund status..........................................2 Residency..............................................10 Resident credit (IT RC).......................... 26 Residency credits.................................. 21 Retirement income credit...................... 19 S Schedule A.......................................14-18 Schedule of Credits..........................19-22 School district numbers....................40-45 SD 100 Completing the top portion................12 General information........................... 46 Line instructions................................. 47 School district tax rates.................40-45 Senior citizen credit......................... 19, 47 Social Security income.......................... 15 U Use (sales) tax Instructions........................................13 Worksheet..........................................31 G General information................................. 6 Online Resources The Department of Taxation's website at tax.ohio.gov has many resources available to assist you when filing your Ohio individual income and school district income tax returns: FAQs – Review answers to common questions on topics such as business income and residency issues. Online Services – File your state and school district income tax returns for free. There are also several self-service options such as making payments, viewing transcripts, and accessing your 1099-G and 1099-INT statements from the Department. Forms – Find all individual and school district income tax forms (including related schedules and worksheets). Many forms have fill-in versions that you can complete online, print, and then submit to the Department. Information Releases – Research detailed explanations and legal analyses of certain tax topics such as residency and tax issues facing military servicemembers and their civilian spouses. The Finder – Look up your address to determine if you live in a taxing school district as well as the tax rate and four-digit school district number. Ohio Virtual Tax Academy – View webinars designed and presented by Department staff on Ohio's state taxes. Tax Alerts – Sign up to receive tax updates and reminders from the Department via email. IMPORTANT: The following are differences between the online version and print version of the instructions: ● The reference to the federal 1040-NR-EZ, which is not in use for 2020, was removed from the line 13 instruction on page 15. ● The line 7a instruction was added on page 20 due to recent law changes. ● The heading for the $82,000 tax table on page 36 was corrected. -1- 2020 Ohio IT 1040 / SD 100 Taxpayer Assistance Need Help? – To help answer your questions and ensure that your tax returns are filed accurately, the Department of Taxation provides the following resources at tax.ohio.gov: Additionally, the website has all individual income and school district income tax forms for you to download or print. If you cannot find the answer using the website, you may contact the Department using any of the following methods: Email – Click 'Contact Us' at the top right on tax.ohio.gov and select 'Email Us' to access a secure email form. Call – You may call to speak with an examiner at 1-800-282-1780 during the Department's normal business hours. Normal business hours are from 8:00 a.m. to 5:00 p.m. Monday through Friday excluding holidays. Phone service will be extended until 7:00 p.m. from April 8, 2021 through April 15, 2021. Write – Contact the Department by mail at: Ohio Department of Taxation Taxpayer Services Division P.O. Box 182382 Columbus, OH 43218-2382 Visit – The Department's visitor center is open, by appointment only, during normal business hours (8:00 a.m. to 5:00 p.m., Monday through Friday). To make an appointment, please call 1-855-728-1055 during normal business hours or email us. Note: All visitors must present a photo I.D. such as a current driver's license, state I.D., military I.D., or passport. Form Requests: Visit tax.ohio.gov to easily download our forms. You can also request tax forms anytime by calling 1-800-282-1782. For persons who use text telephones (TTYs) or adaptive telephone equipment only: Contact the Ohio Relay Service at 7-1-1 or 1-800-750-0750 and give the communication assistant the Ohio Department of Taxation phone number that you wish to contact. Volunteer Income Tax Assistance Program (VITA) and Tax Counseling for the Elderly (TCE): These programs help persons with disabilities as well as elderly, low-income and limited Englishspeaking taxpayers complete their state and federal returns. For locations in your area, call 1-800-906-9887, or visit their website at http://www.irs.gov/Individuals/ Free-Tax-Return-Preparation-for-Youby-Volunteers. AARP: Trained and certified AARP tax aide volunteer counselors assist low- to middle-income taxpayers, with special attention to those age 50 and older. For more information, call 1-888-227-7669 or visit their website at http://www.aarp. org/money/taxes/aarp_taxaide/. These instructions contain law references for specific line items and requirements. To review Ohio income and school district income tax law, see codes.ohio.gov/orc/5747 and codes.ohio.gov/orc/5748, respectively. Check Your Refund Status Anytime, Anywhere! ¬ 24-Hour Hotline - 1-800-282-1784 ¬ Online at tax.ohio.gov ¬ Mobile App - Search "Ohio Taxes" on your device's app store. -2- 2020 Ohio IT 1040 / SD 100 Our Mission To provide quality service to Ohio taxpayers by helping them comply with their tax responsibilities and by fairly applying the tax law. A Message From the Ohio Tax Commissioner Dear Ohio Taxpayers, The year 2020 and the scourge of the coronavirus has been lifechanging, but one of the great strengths of our state and country is resilience. Even under clouds of hardship, we continue to move ahead to meet our challenges and responsibilities. I’d like to thank you and all Ohioans for taking the time to fulfill the critical responsibility of preparing and filing the Ohio income tax return. It is truly an act that benefits us all. Whether it’s educating our children, protecting our families and neighbors, or safeguarding our health and the environment that surrounds us, every Ohioan is impacted in some positive way from the taxes we pay. This tax season, as is often the case, brought changes to the laws and rules that govern Ohio’s income tax filing system. These instructions address those changes and give you the guidance you need to fill out your 2020 income tax return. I’d like to call attention to a few of the more significant changes: • • • • The recent reduction of tax brackets from 8 to 6 brackets means that those with taxable non-business income of $22,150 or less will pay no tax. For filers who are not requesting a refund, and who have no income tax (or school district income tax) liability, a redesigned form Ohio IT 10 is available for simplified filing. The Ohio Educator deduction is new and available on Ohio Schedule A to claim education related expenses in excess of those deducted on the federal return. The Lead Abatement credit is also new and available to taxpayers who have paid for lead abatement or removal and received a credit certificate from the Ohio Department of Health. If you aren’t already filing your tax return electronically, please consider doing so. It’s more accurate and secure and the fastest way to get a refund. Remember, you can electronically file your Ohio tax return for free with our I-File system. Please keep in mind the deadline for filing both your Ohio and federal tax return is April 15, 2021. And as a reminder, a request for a filing extension does not extend your payment due date. If you have any questions or need assistance with your Ohio return, you can contact our Taxpayer Assistance line at 1-800282-1780, or reach out online at tax.ohio.gov. Best wishes, Jeff McClain Ohio Tax Commissioner 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- 2020 Ohio IT 1040 / SD 100 Highlights for 2020 New Ohio Income Tax Tables. Beginning with tax year 2020, Ohio's individual income tax brackets have been modified so that individuals with Ohio taxable nonbusiness income of $22,150 or less are not subject to income tax. See pages 32-37. New Ohio IT 10. This return is available to certain taxpayers who are not requesting a refund and do not have an Ohio individual income or school district income tax liability. Additionally, eligible nonresidents may use the IT 10 to make their nonresident statement in place of filing the IT NRS. See the instructions on page 10. New Schedules of Withholding. Paper filers must complete the Ohio Schedule of Withholding (and Schedule of School District Withholding) listing each income statement reporting Ohio (or school district) tax withheld. See pages 13 and 47 for more information. New Lead Abatement Credit. A new nonrefundable credit is available for individuals who paid for lead removal and were issued a credit certificate from the Ohio Department of Health. See the instructions on page 21. Electronic Estimated Payments. Estimated payments can be submitted with your electronically filed Ohio IT 1040 and/ or SD 100 through a participating third-party tax preparation product. Payments may be future dated but must be scheduled by the 4th quarter estimated payment due date. New Credit Change. Due to law changes, the financial institution tax (FIT) credit is no longer available beginning in tax year 2020. New Ohio Educator Deduction. A new deduction is available on Ohio Schedule A for Ohio educator expenses in excess of the federal deduction. See the instruction on page 17. Modified Adjusted Gross Income. Beginning with tax year 2019, your exemption amount, certain credits, and the school district income tax bases are determined using "modified adjusted gross income" or "modified adjusted gross income less exemptions." See the instructions on page 6. Electronic 1099-Gs. Your 1099-G is available to view and print using Online Services at tax.ohio.gov. You can elect to receive your 1099-G electronically. 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 8 to 10 weeks to process. Common Filing Tips for Paper Filers Write legibly using black ink and UPPERCASE letters. Double-check your demographic information. • Verify your name(s) and SSN(s) are correct. • Verify your current address. If you are due a refund, it will be mailed to this address. Verify the forms and vouchers are for the correct tax year. • The Department releases new forms and vouchers each tax year. Do not change the year on the form or voucher. If you do this, processing of your form or voucher may be delayed. Do not write on software-generated paper returns. • If you print a software-generated return from a tax preparation program and later need to change information on the return, do not write in the changes. Use the software to make the necessary changes and reprint the return. • The Department’s system will not pick up handwritten changes on returns generated by tax preparation software. Use the proper payment voucher. • Use the Ohio IT 40P to pay your Ohio income tax, and the Ohio SD 40P to pay your school district tax due. • If you are amending your return(s), use the Ohio IT 40XP to pay your Ohio income tax, and the Ohio SD 40XP to pay your school district tax due. Do not staple, paper clip or otherwise attach your return together. • This will allow the Department to process your return as quickly as possible. We will ensure your return information stays grouped together. Include all necessary schedules and worksheets. • If you have an amount on line 2a and/or 2b of your IT 1040, include Ohio Schedule A. • If you have an amount on line 9 and/or 16 of your IT 1040, include the Ohio Schedule of Credits and any appropriate worksheets. • If you have an amount on line 11 of your Ohio Schedule A, include Ohio Schedule IT BUS. • If you have dependents, include Ohio Schedule J. • Ensure your return is placed in the proper order: 1) Ohio IT 1040 (pages 1 and 2) 2) Ohio Schedule A 3) Ohio Schedule IT BUS 4) Ohio Schedule of Credits 5) Ohio Schedule J 6) Ohio Schedule of Withholding 7) Worksheets and attachments 8) Wage and income statements Include verification for your withholding and credits. • If you have an amount on line 14 of your IT 1040 and/or an amount on line 7 of your SD 100, include the Schedule of Ohio Withholding and/or Schedule of School District Withholding as well as copies of your wage and income statements. • If you are claiming any refundable and/or nonrefundable business credits on your Ohio Schedule of Credits, include copies of the required certificates and/or Ohio K-1s. Do not include any bank or routing information with your paper return. • Direct deposit of individual income and school district income tax refunds is not available to paper filers. When filing both Ohio and school district income tax returns, send each return in its own envelope. -4- 2020 Ohio IT 1040 / SD 100 Payment Options and Mailing Addresses 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. By law, all tax is due on April 15, 2021 except for certain members of the military. The Department is not authorized to set up payment plans. However, you may submit partial payments toward any outstanding liability including interest and penalties. Such payments will not stop the Department's billing process, or collection attempts by the Ohio Attorney General's Office. Electronic Check You can pay by electronic check regardless of your filing method. If you use IRS e-file or Ohio I-File, simply follow the payment instruction prompts for making payments by electronic check. If you are paper filing, you can pay by electronic check using the Department’s Online Services at tax.ohio.gov. This payment method withdraws funds directly from your checking or savings account. There is no fee for using this payment method. Generally, your payment will be withdrawn within 24 hours of the date you choose for payment. You must ensure that the funds are in your account and available on the date you choose for payment. The payment will show on your bank statement as “STATE OF OHIO”. You can delay payment until the payment deadline of April 15, 2021. You can also pay your quarterly 2021 Ohio individual and/or school district estimated income tax with this method. Important: Future-dated payments can only be modified through the Department's Online Services at tax.ohio.gov. Credit or Debit Card You can pay using a credit or debit card by visiting www.officialpayments.com or calling 1-800-272-9829. This payment method charges your credit card (Discover, Visa, MasterCard or American Express). Note: When paying using this method, you will be provided a confirmation number. Keep this number with your tax records. Official Payments charges a convenience fee equal to 2.5% of your payment or $1, whichever is greater. The state of Ohio does not receive any of this fee. The payment will appear on your credit card statement as two separate entries – one for the payment itself and a second for the Official Payments service fee. When will my payment be posted? Your payment will be effective the date you authorize it. You cannot future-date a credit or debit card payment. If you subsequently reverse the transaction, you may be subject to penalties, interest and other fees. What information do I need when using this payment method? Please have the following information available: ● The Ohio jurisdiction code: 6446; ● Your SSN and your spouse’s SSN (if filing jointly); ● The tax year of your payment; ● The payment amount; ● Your credit or debit card number and expiration date; AND ● The school district number (if making a school district income tax payment). How do I make a debit or credit card payment by phone? When you call Official Payments: ● First, when prompted, enter “2”. ● Second, when prompted, enter “6446#”. ● Third, verify the information. If correct, enter “1”. ● Fourth, when prompted, enter “1” if making an income tax payment, or “2” if making a school district income tax payment. You will then be prompted to enter your payment information. What if there’s a problem with my payment? Call Official Payments at 1-800-487-4567. Paper Check or Money Order You may pay your Ohio individual income and/or school district income tax by check or money order. If you use a money order, keep a copy for your records. You will be charged a $50 fee for writing a bad check. Ohio IT 1040: Make your check or money order payable to “Ohio Treasurer of State.” Include the tax year and the last four digits of your SSN on the “Memo” line. Include the appropriate voucher: ● IT 40P for original returns; OR ● IT 40XP for amended returns. SD 100: Make your check or money order payable to “School District Income Tax.” Include the tax year, the last four digits of your SSN, and the school district number on the "Memo" line. Include the appropriate voucher: ● SD 40P for original returns; OR ● SD 40XP for amended returns. Where Should I Mail My Return and/or Payment? If Submitting Ohio Form: Mail To: IT 1040 without payment Ohio Department of Taxation P.O. Box 2679 Columbus, OH 43270-2679 IT 1040 with payment (include Ohio IT 40P / IT 40XP) Ohio Department of Taxation P.O. Box 2057 Columbus, OH 43270-2057 SD 100 without payment Ohio Department of Taxation P.O. Box 182197 Columbus, OH 43218-2197 SD 100 with payment (include SD 40P / SD 40XP) Ohio Department of Taxation P.O. Box 182389 Columbus, OH 43218-2389 If Only Submitting Payment With Voucher: IT 40P / IT 40XP SD 40P / SD 40XP -5- Mail To: Ohio Department of Taxation P.O. Box 182131 Columbus, OH 43218-2131 Ohio Department of Taxation P.O. Box 182389 Columbus, OH 43218-2389 2020 Ohio IT 1040 / SD 100 General Information for the Ohio IT 1040 and SD 100 When Are My Ohio Returns Due? Most taxpayers must file their Ohio IT 1040 and SD 100 (if applicable) by April 15, 2021. You must file your return by this date even if you are unable to pay the tax due. For an exception for certain military servicemembers, see page 8. Filing extensions: Ohio does not have an extension request form, but honors the IRS extension. If you filed an IRS extension, your due date for filing your Ohio IT 1040 and SD 100 is October 15, 2021. Include a copy of your IRS extension or IRS acknowledgment, and/or your extension confirmation number. An extension of time to file does not extend the time for payment of the tax due. You must make extension payments by April 15, 2021 on the Ohio IT 40P and/or SD 40P. Interest will accrue on any tax not paid by April 15, 2021, and penalties may also apply. See R.C. 5747.08(G) and Ohio Adm. Code 5703-7-05. What Tax Records Do I Need to Keep? Keep a copy of your: ● Income tax returns and schedules; ● Wage and income statements; ● Supporting documentation; ● Payment records; for at least four years from the later of the filing due date or the date you filed the return. You must be able to support all items listed on your return. See R.C. 5747.17. How Should I Complete My Income Tax Returns? ● Use black ink ONLY. ● Round numbers to the nearest dollar. Do not print over the zeros in the boxes. ● Print numbers and letters (UPPER CASE only) inside the boxes as shown: 123 ANY ST R EET How Do I Round to the Nearest Dollar? To round, drop any cents less than 50 cents and increase amounts from 50 cents to 99 cents to the next highest dollar. See R.C. 5703.055. Does Ohio Follow the Alternative Preparer Signature Procedures? The Department follows the alternative preparer signature procedures found in federal Notice 2004-54. However, the paid preparer must print (not sign) his/her name if the taxpayer authorizes the preparer to discuss the return with the Department. Preparers with a Preparer Tax Identification Number (PTIN) must provide it on all returns. See R.C. 5703.263(C) and 5747.08(F). Can My Tax Preparer Contact the Department About My Tax Return? You may check the box above your tax preparer's name on page 2 of the return to authorize your preparer to: ● Contact the Department about the status of your return, payments, or refund; ● Provide the Department with information missing from your return; AND ● Respond to inquiries or notices from the Department related to the return. See R.C. 5747.08(J). Should I Make Estimated Tax Payments for Tax Year 2021? If your income is subject to Ohio withholding, you generally do not need to make estimated payments. You should make estimated payments for tax year 2021 if your estimated Ohio tax liability (total tax minus total credits) less Ohio withholding is more than $500. Estimated payments are made quarterly according to the following schedule: 1st quarter - April 15, 2021 2nd quarter - June 15, 2021 3rd quarter - Sept. 15, 2021 4th quarter - Jan. 18, 2022 Use the Ohio IT 1040ES vouchers to make estimated Ohio income tax payments. Use the Ohio SD 100ES vouchers to make estimated Ohio school district tax payments. Joint filers should determine their combined estimated Ohio tax liability and make joint estimated payments. Note: Instead of making estimated payments, you can increase your Ohio withholding by filing a revised Ohio IT 4 with your employer. Also, special rules regarding estimated payments apply to certain taxpayers with farming and/or fishing income. See Adm. Code 5703-7-04. If you do not make the required estimated payments, you may be subject to an interest penalty for underpayment of estimated taxes. See form IT/SD 2210. For more information, see tax.ohio.gov for FAQs (in the "Income - Estimated Income/ School District Taxes and the 2210 Interest Penalty" topic). See also R.C. 5747.09. -6- What is Modified Adjusted Gross Income? Modified adjusted gross income is your Ohio adjusted gross income (Ohio IT 1040, line 3) plus your business income deduction (Ohio Schedule A, line 11). If you did not take a business income deduction, your modified adjusted gross income matches your Ohio adjusted gross income. You will need to know your modified adjusted gross income to determine your personal exemption amount and if you qualify for any of the following credits: ● Retirement income credit; ● Lump sum retirement credit; ● Senior citizen credit; ● Lump sum distribution credit; ● Child care and dependent care credit; ● Exemption credit; AND ● Joint filing credit. Additionally, if you live in an earned income tax base school district, your taxable income is limited to only income included in your modified adjusted gross income. Use the worksheet on page 31 to calculate your modified adjusted gross income. See R.C. 5747.01(II). What if a Taxpayer Is Deceased? The taxpayer's representative, such as an executor or administrator, must file the deceased taxpayer's return by: ● Checking the "Deceased" box after the applicable SSN; ● Selecting the filing status from the federal income tax return; AND ● Signing the return on behalf of the deceased. If the taxpayer is due a refund, the check will be issued in the taxpayer's name. The taxpayer's representative can present proof that she or he is the executor or administrator to the bank when cashing the check. If the taxpayer's representative needs the check reissued to include his or her name, see tax.ohio.gov for FAQs (in the "Income General Information" topic) with instructions. See R.C. 5747.08(A). What if I Move After Filing My Return? If you move after filing your return, notify the Department as soon as possible of your address change. You should also notify the post office of your address change at moversguide.usps.com. 2020 Ohio IT 1040 / SD 100 Amending Your Ohio IT 1040 and SD 100 You can file an amended Ohio IT 1040 or SD 100 to report changes to your originally filed return(s). An amended return can result in either a tax due or a refund based on the changes. Under certain circumstances, an amended return may be required. To amend the Ohio IT 1040 or SD 100, you should file a new return, reflecting all proposed changes, and indicate that it is amended by checking the box at the top of page 1. You must include the IT RE with your amended IT 1040. You must include the SD RE with your amended SD 100. Be sure to list your current mailing address on the amended return. It may take at least 120 days from the date of receipt to process your amended return. For more information, see tax.ohio.gov for FAQs (in the "Income - Amended Returns" topic). When Not to Amend Your Return ● Social security, disability, survivorship, and retirement benefits: Copies of 1099(s), pages 1 and 2 of your federal return, and the retirement plan paying the benefits; ● Residency status: Any document supporting your residency change including a copy of your resident state return, driver’s license, and/or voter registration; ● Payments/credits: Copies of your income statements (W-2, 1099, etc.), Ohio IT K-1, or credit certificates; ● Nonresident credit: Ohio form IT NRC. See R.C. 5747.11. Reporting Additional Tax Due You should amend your return to report additional income, or reduce a previously claimed credit or deduction. Such changes may result in additional tax due. Payment should be included with your amended return using an IT 40XP and/or SD 40XP payment voucher. Some common mistakes may not require an amended return. Some examples include: ● Math errors; ● Missing pages or schedules; ● Demographic errors; ● Missing income statements (W-2, 1099, K-1) or credit certificates; ● Unclaimed payments. Changes to Your Federal Return In these situations, the Department will either make the corrections or contact you to request documentation. Do not file your amended Ohio return(s) until the IRS has finalized the changes to your federal return. Once they are finalized, include a copy of all of the following: ● Your federal 1040X; ● The IRS acceptance letter; AND ● The refund check issued to you by the IRS, if applicable. Requesting a Refund You may amend your return to request an additional credit, deduction or payment. Such changes may result in a refund. Generally, you have four years from the date of the payment to request a refund. You must include supporting documentation to substantiate the changes reported on your amended return. Some common required documentation includes: ● Business Income: Pages 1 and 2 of your federal return, the federal schedules reporting your business income, and IT K-1 forms; If the IRS makes changes to your federal return, either based on an audit or an amended return, and those changes affect your Ohio return(s), you are required to file an amended IT 1040 and/or SD 100. The IRS notifies us of these changes. Note: Instead of providing these documents, you may be able to submit a copy of the IRS Tax Account Transcript reflecting your updated federal return information. If there is a change in your filing status and/ or dependents, it must be reflected on your amended Ohio return(s). Additionally, for changes to dependents, complete an updated Ohio Schedule J. -7- Net Operating Loss: To claim a federal NOL carryback, check both boxes at the top of the return(s) and include a completed Ohio Schedule IT NOL. See the instructions for the Ohio Schedule IT NOL on page 49. Your amended Ohio IT 1040 and/or SD 100 must be filed no later than 90 days after the CAUTION IRS completes its review of your federal return, even after the four-year period has passed. Failure to file the return within the 90-day period may result in an assessment or a denial of your refund claim. ! See R.C. 5747.10. Changes to Your Resident Credit You must file an Ohio amended return based on changes made by another state if all of the following are true: ● You claimed a resident credit on your Ohio IT 1040; ● You filed income tax returns in other states; ● The Ohio resident credit claimed was based on either the taxes due or the taxes paid to the other states; ● The other states made changes to the returns; AND ● The changes will affect your Ohio resident credit calculation. The calculation of your income taxes paid to other states may change after the four-year period has passed. If the taxes paid would otherwise qualify for the Ohio resident credit, you have an additional 60 days after the changes have been finalized by the state(s) to file an amended return and request any refund that results from the changes. Once the changes are finalized, please include a copy of all of the following: ● A revised Ohio form IT RC; ● The other state return(s) or correction notice(s); AND ● Proof of payment to the other state(s). See R.C. 5747.05(B)(3). 2020 Ohio IT 1040 / SD 100 Ohio Income Tax for Military Servicemembers and Their Civilian Spouses Residency. A military servicemember is a resident of their "state of legal residence." This is generally the same as the servicemember's "home of record" unless it is subsequently changed. The servicemember's state of legal residence does not change based on military orders. A servicemember's civilian spouse will also retain their original state of legal residence if the servicemember and spouse have the same state of legal residence and the spouse is only accompanying the servicemember as part of military orders. However, a civilian spouse can elect to have the same state of legal residence as the servicemember. Deductions. Ohio law provides five distinct deductions to military servicemembers. Please note, only income included in the taxpayer's federal adjusted gross income is eligible for these deductions. For example, Ohio Resident Veterans Bonus payments are not included in federal adjusted gross income and thus are not deductible. The following deductions are in the "Uniformed Services" section of Ohio Schedule A: ● Line 26 - Deduction for military pay and allowances for certain active duty servicemembers stationed outside Ohio ● Line 27 - Deduction for military pay However, the Department recommends that such taxpayers file an Ohio IT 1040 or IT 10 to avoid delinquency billings. For more information on who must file an Ohio income tax return, see page 10. earned by a nonresident servicemember ● Line 28 - Deduction for uniformed services retirement income ● Line 29 - Deduction for military injury relief fund grants and veteran's disability severance payments ● Line 30 - Deduction for certain reimbursements and benefits received for service in the Ohio National Guard Extensions to File/Pay. Certain military servicemembers may qualify for extensions to file their Ohio income tax returns and pay their Ohio tax due. Generally, Ohio recognizes any extensions granted by the IRS. Such taxpayers will have the same extensions to file their Ohio returns and pay any Ohio tax due. These servicemembers do not owe interest, penalties, or the interest penalty in connection with this extension period. See R.C 5747.026 for more information. Additionally, a servicemember's nonresident civilian spouse can deduct, on line 27, compensation earned in Ohio, when the servicemember and spouse have the same state of residence and are present in Ohio due to military orders. See pages 16-17 for specific instructions on each of these deductions. Taxability. The charts below summarize the taxability of income for military servicemembers and their civilian spouses. Withholding. A servicemember who qualifies for the deduction on line 26 or a civilian spouse who qualifies for the deduction on line 27 can complete form IT 4 to avoid Ohio withholding on income not subject to tax. Such taxpayers should check the appropriate box in Section III of the IT 4 and provide the form to their employers. Filing. Certain military service members may not have a filing requirement due to the deductions available under Ohio law. Taxability of a Military Servicemember's Income in Ohio 1) If the servicemember is a: 2) And the income is earned: 3) And the source of the income is: Military Service NonMilitary 4) Then the income is: Taxed in Ohio Taxed in Ohio Resident of Ohio In Ohio Nonresident of Ohio Outside of Ohio Military Service NonMilitary In Ohio Military Service Deductible on Eligible for Deductible on Schedule A, the Resident Schedule A, line 27 line 26 Credit Outside of Ohio NonMilitary NonMilitary Military Service Taxed in Ohio Deductible on Eligible for the Schedule A, Nonresident line 27 Credit Taxability of a Servicemember's Civilian Spouse's Income in Ohio Resident of Ohio Nonresident of Ohio 1) If the spouse is a: 2) And the spouse and servicemember: 3) And the income is earned: In Ohio Outside of Ohio In Ohio Outside of Ohio In Ohio Outside of Ohio 4) Then the income is: Taxed in Ohio Eligible for the Resident Credit Deductible on Schedule A, line 27 Eligible for the Nonresident Credit Taxed in Ohio Eligible for the Nonresident Credit N/A (Skip to #3) The same state of legal residence Different states of legal residence For more information, see tax.ohio.gov for FAQs (in the "Military" topic), or Information Release IT 2008-02 titled "Ohio Taxable Income and Deductions for Servicemembers and Civilian Spouses." You can also email us at [email protected] -8- 2020 Ohio IT 1040 / SD 100 Ohio Definitions and Examples of Business and Nonbusiness Income How is Business Income Treated on My Ohio Return? Taxpayers can deduct the first $250,000 ($125,000 for married separate filers) of their business income included in their federal adjusted gross income. Also, any business income not deducted is taxed at a flat 3%. See the instructions for the Ohio Schedule IT BUS on pages 18-19. Additionally, Ohio-related business income earned by nonresidents is taxable to Ohio. See the instructions for the IT NRC on page 22. How Does Ohio Law Define Business and Nonbusiness Income? "Business income" is income, including gain/ loss, arising from any of the following: ● Transactions, activities, and sources in the regular course of a trade or business operation; ● Real, tangible, and intangible property if the acquisition, rental, management, and disposition of the property constitute integral parts of the regular course of a trade or business operation; ● A partial or complete liquidation of a business, including gain or loss from the sale or other disposition of goodwill; OR ● Compensation and guaranteed payments paid by a pass-through entity, or a professional employer organization on its behalf, to an investor who directly or indirectly owns 20% or more of the entity. "Nonbusiness income" is any income other than business income. See R.C. 5747.01(B), 5747.01(C) and 5733.40(A)(7). How Do I Determine What Income is Business Income? Business income can be determined by using either test: Transactional Test: Looks to the nature, frequency and regularity of the transaction. Functional Test: Looks to if the property was integral to the trade or business, or if it generated business income in the past. See Kemppel v. Zaino, 2001-Ohio-92. Generally, income recognized by a sole proprietorship or pass-through entity is business income. However, determining if income is business income is highly dependent upon the specific facts and circumstances. What Are Some Examples of Business Income vs. Nonbusiness Income? Interest and Dividends: John reports $1,500 of interest and dividend income on federal Schedule B. $200 of his interest income is from a pass-through entity that primarily operates an investment business. The remaining $1,300 is from personal, nonbusiness sources. Thus, only $200 of John’s interest is business income. Capital Gains and Losses: Andrew recognizes a capital gain from the sale of a tractor used to harvest wheat on his farm. Since the tractor was integral to his farming business, the capital gain is business income. Capital Gains and Losses: Paul reports $8,000 of capital gain income on his federal Schedule D. $2,000 of the capital gains are from a pass-through entity that primarily operates an investment business. The remaining $6,000 is from personal, nonbusiness sources. Thus, only $2,000 of Paul’s capital gains are business income. Capital Gains and Losses: Ann has a 90% ownership interest in a pass-through entity; she sells her interest in the business to another individual. As a result of this sale, Ann realizes a capital gain of $500,000. Ann’s ownership interest is an intangible asset, and capital gains resulting from the sale of intangible assets are generally nonbusiness income. See Corrigan v. Testa, 2016-Ohio-2805. Rental Income and Losses: Debbie owns a rental property. She actively advertises, manages, and maintains the property. Debbie is in the trade or business of property rental. Therefore, her rental income is business income. Rental Income and Losses: Ryan occupies a home on a golf course. The golf course hosts a two-week tournament every year. Ryan annually takes a vacation to Florida and rents out his home during the tournament. While the rental might be considered regular, Ryan is not in the trade or business of property rental. Therefore, his rental income is not business income. Royalty Income: Hannah works full-time from her home writing children’s books. Hannah has an agreement with a publisher that pays her a royalty for each copy of her book that is sold. Hannah is in the trade or business of writing books. Therefore, her royalty income is business income. Mineral Rights Income: Cynthia allows a company to extract minerals from her residential property. She receives income based on the company's usage of her land. Since Cynthia is not engaged in a trade or business related to this income, it is not business income. Pass-Through Income: Ellen owns 15% of a pass-through entity. She reports $50,000 of ordinary income, $10,000 of bonus depreciation, and $60,000 of guaranteed payments on federal Schedule E. Since Ellen owns less than 20% of the entity, the guaranteed payments are nonbusiness income. Thus, her net business income from federal Schedule E is $40,000 (her ordinary income less bonus depreciation). Guaranteed Payments: Stan owns 25% of a pass-through entity. He reports a $60,000 guaranteed payment on federal Schedule E. Because he owns at least 20% of the entity, the guaranteed payment is business income. Wages/Compensation: Jim owns 80% of an S corporation. Jim receives $200,000 of wages from the S corporation, which are reported on a W-2. Because he owns at least 20% of the corporation, the wages are reclassified as business income. Trust Income: Brett sets up a trust, with himself as the beneficiary, that invests in multiple pass-through entities. Operating income from these entities is distributed to the trust, which further distributes the income to Brett. Since the income was business income to the entities, it retains its character as business income as it passes through to the trust and to Brett. Trust Income: David sets up a trust, with himself as the beneficiary, to hold his personal investments. Although David uses a trust, the usage of a trust does not create a trade or business. Therefore, the investment income is nonbusiness income to both the trust and to David. For more information, see tax.ohio.gov for FAQs (in the "Income – Business Income and the Business Income Deduction" topic). -9- 2020 Ohio IT 1040 General Information for the Ohio IT 1040 Who Must File an Ohio Income Tax Return? Every Ohio resident and every part-year resident is subject to the Ohio income tax. Every nonresident having Ohio-sourced income must also file. Examples of Ohiosourced income include the following: ● Wages or other compensation earned in Ohio (see "Exception" below); ● Ohio lottery winnings; ● Ohio casino gaming winnings; ● Income or gain from Ohio property; ● Income or gain from a sole proprietorship doing business in Ohio; ● Income or gain from a pass-through entity doing business in Ohio. Exception: A full-year nonresident living in Indiana, Kentucky, West Virginia, Michigan, or Pennsylvania does not have to file if the nonresident's only Ohio-sourced income is wages. Example: Charley lives in Kentucky but commutes to Cincinnati every day to her job. Charley's wages are not taxable in Ohio even though they are earned here. You do not have to file an Ohio income tax return if: ● Your Ohio adjusted gross income (Ohio IT 1040, line 3) is less than or equal to $0; ● The total of your senior citizen credit, lump sum distribution credit, and joint filing credit (Ohio Schedule of Credits, lines 4, 5 and 11) is equal to or exceeds your income tax liability (Ohio IT 1040, line 8c) and you are not liable for school district income tax; OR ● Your exemption amount (Ohio IT 1040, line 4) is the same as or more than your Ohio adjusted gross income (Ohio IT 1040, line 3). However, even if you meet one of these exceptions, if you have a school district income tax liability (SD 100, line 2), you are required to file the Ohio IT 1040. Note: If your federal adjusted gross income is greater than $24,100, the Department recommends that you file an Ohio IT 1040 or IT 10, even if you do not owe any tax, to avoid delinquency billings. Ohio IT 10: Certain taxpayers can file Ohio form IT 10 instead of the Ohio IT 1040. The four types of taxpayers described on form IT 10 are eligible to file the form because they: ● Do not have an Ohio individual income or school district income tax liability; AND ● Are not requesting a refund. Ohio Residency What Is my Ohio Residency Status? How Do I Show I Am a Nonresident of Ohio? Resident: You are an Ohio resident for income tax purposes if you are domiciled in Ohio. Thus, under Ohio law, the terms “domiciled” and “resident” mean the same thing. Any individual can challenge the presumption of Ohio residency by providing documentation showing that they are a nonresident. Ohio uses a contact period test to determine the burden of proof needed to show that an individual is a nonresident. Generally, any individual with an abode in Ohio is presumed to be a resident. The abode can be either owned or rented. Temporary absence from your Ohio abode, no matter how long, does not change your residency status. Thus, if you live in Ohio, the presumption is that you are an Ohio resident. If you had fewer than 213 contact periods in Ohio during the tax year, you must provide enough documentation to show that it is more likely than not that you were a nonresident. If you had 213 or more contact periods, you must provide clear and convincing documentation that you were a nonresident. Example: Brent travels to Florida each winter and returns to Ohio each spring. However, he maintains his Ohio driver's license, voter registration, etc. and has not established permanent residence in Florida. Therefore, he is a full-year resident of Ohio. Alternatively, certain individuals can change the presumption of Ohio residency to a presumption of nonresidency by filing the Ohio Nonresident Statement (form IT NRS). For more information on this statement, see pages 12 and 48. Part-year resident: You are a part-year resident of Ohio if you were a resident of Ohio for a portion of the tax year and a nonresident for the rest of the tax year. Thus, you are a part-year resident if you permanently moved into or out of Ohio during the tax year. See R.C. 5747.24(B), (C) and (D). Part-year residents are entitled to the nonresident credit for any income earned while they were a resident of another state. They are also eligible for the resident credit on non-Ohio income earned while they were an Ohio resident, if they were subject to, and paid tax on, that income in another state. Nonresident: You are a nonresident if you were a resident of another state for the entire tax year. Nonresidents who earn or receive income within Ohio will be able to claim the nonresident credit with respect to all items of income not earned and not received in Ohio. If you are currently a member of the military and you have questions about your residency status, see page 8. For more information, see tax.ohio.gov for FAQs (in the "Income - Ohio Residency and Residency Credits" topic), or Information Release IT 2018-01 titled, "Residency Guidelines - Tax Imposed on Resident and Nonresident Individuals for Taxable Years 2018 and Forward." See also R.C. 5747.01(I)(1) and Cunningham v. Testa, 2015-Ohio-2744. See R.C. 5747.08. - 10 - What Is a Contact Period? You have a contact period in Ohio if all of the following are true: ● You have an abode outside of Ohio; ● You are away overnight from your abode; AND ● While away, you spend any portion of two consecutive days in Ohio. You do not have to spend the night in Ohio. For example, if you spend portions of Monday and Tuesday in Ohio, but stay in a hotel in Kentucky on Monday night, you would still have a contact period in Ohio. You must spend consecutive days in Ohio to have a contact period. For example, if you spend portions of Monday and Wednesday in Ohio, but not Tuesday, then you would not have a contact period in Ohio. See R.C. 5747.24(A). 2020 Ohio IT 1040 Donations that Apply to Ohio IT 1040 A donation will reduce the amount of the refund that you are due. If you decide to CAUTION donate, this decision is final. You cannot change your mind and later ask for your donations to be refunded. If you do not want to donate, do not enter an amount on Ohio IT 1040, lines 26a-f. ! Because your tax return is confidential, the Department cannot release your name to the fund administrators, but the administrators extend appreciation to those who donate. Your donation may be tax-deductible on a future federal income tax return. See R.C. 5747.113. Breast and Cervical Cancer Project – Contributions made to the project are used to provide free breast and cervical cancer screening, diagnostic and outreach/case management services to uninsured and underinsured Ohio women. The project is administered by the Ohio Department of Health and is operated through 11 regional agencies, which enroll women in the program and schedule them for services with clinical providers in the agency's service area. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide grants for free breast and cervical cancer screening, you may do so by writing a check payable to "Ohio Treasurer of State" or "Ohio Department of Health" and mailing it to: Ohio Department of Health Attn: Breast & Cervical Cancer P.O. Box 15278 Columbus, Ohio 43215-0278 In the description on the check, please write "Breast and Cervical Cancer Donation." Military Injury Relief Fund – The Military Injury Relief Fund provides grants to individuals injured while in active service as a member of the United States armed forces and to individuals diagnosed with post-traumatic stress disorder while serving, or after having served, in Operation Iraqi Freedom, Operation New Dawn or Operation Enduring Freedom. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide grants to such individuals, you may do so by writing a check payable to "Ohio Treasurer of State (ODVS)" and mailing it to: Ohio Department of Veterans Services Military Injury Relief Fund P.O. Box 373 Sandusky, OH 44871 Ohio History Fund – The Ohio History Fund is a 501(c)(3) nonprofit organization that allocates these funds toward a matching grants program to support state and local history-related projects throughout Ohio. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide grants to promote and protect Ohio's rich history, you may do so by writing a check payable to "The Ohio History Connection Income Tax Contribution Fund" and mailing it to: The Ohio History Connection Attn: Business Office 800 E. 17th Avenue Columbus, OH 43211-2474 Donations may also be made online at www.ohiohistory.org. State Nature Preserves – Contributions are used to protect Ohio's state nature preserves, natural areas and endangered species habitat. Donations are desperately needed to make the difference between adequate management of Ohio's most fragile habitats and ongoing degradation due to invasive exotic species and other threats. Assist us in protecting your natural heritage. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to protect Ohio's natural areas, you may do so by writing a check payable to the "Natural Areas and Endangered Species Fund" and mailing it to: Ohio Department of Natural Resources Division of Natural Areas and Preserves 2045 Morse Road, Building C-4 Columbus, OH 43229-6693 To make a donation online or to learn more, go to the "Support Natural Areas" section at naturepreserves.ohiodnr.gov. - 11 - Wildlife Species and Endangered Wildlife – The Division of Wildlife uses these funds to establish habitat and protect open spaces for wildlife. Past donations have helped to restore populations of endangered species. Your generous donation will continue to help support Ohio's native wildlife – a natural treasure! If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide grants to protect Ohio's natural heritage, you may do so by writing a check payable to the "Nongame and Endangered Wildlife Special Account" and mailing it to: Ohio Department of Natural Resources Division of Wildlife 2045 Morse Road, Building G-1 Columbus, OH 43229-6693 To learn more, go to wildlife.ohiodnr.gov. Wishes for Sick Children – Contributions are distributed by the Ohio Department of Health to fund a program administered by a nonprofit corporation that grants the wishes of individuals who are under the age of 18, Ohio residents, and have been diagnosed with a life-threatening medical condition. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide funds for Wishes for Sick Children, you may do so by writing a check payable to "Ohio Treasurer of State" or "Ohio Department of Health" and mailing it to: Ohio Department of Health Attn: Wishes for Sick Children P.O. Box 15278 Columbus, OH 43215-0278 2020 Ohio IT 1040 / SD 100 / IT 10 Completing the Top Portion of Your Ohio Returns These instructions are used to complete the top portions of the Ohio IT 1040, SD 100, and IT 10. IT 1040, SD 100 and IT 10 IT 1040 and IT 10 SD 100 Only Amended Return Check Box School District Number School District Number Check this box if you are amending your previously filed return. You must include the Ohio IT RE and/or SD RE with your amended return. See page 7 for amended return instructions. This box is not available on form IT 10. If you were an Ohio resident for any part of the tax year, enter the number of the school district in which you lived during the majority of the year. Full-year nonresidents should enter 9999. Enter the school district number for which you are filing this return on pages 1 and 2. See pages 40-45 for a full list of Ohio’s school districts or use The Finder at tax. ohio.gov. See pages 40-45 for a full list of Ohio’s school districts or use The Finder at tax. ohio.gov. School District Residency Status Net Operating Loss (NOL) Check Box Check this box if you are amending due to a net operating loss carryback. You must include the Ohio Schedule IT NOL with your amended return. This box is not available on form IT 10. Name(s), Address and SSN(s) Enter your name and current address on page 1 and your SSN on pages 1 and 2 of your return (if filing jointly, also enter your spouse’s name and SSN on page 1). Do not include your spouse’s name and SSN if you are not filing jointly. Note: If you and/or your spouse have an Individual Taxpayer Identification Number (ITIN), you should enter the ITIN in the spaces provided on the return for the SSN. County If you were an Ohio resident for any part of the tax year, enter the first four letters of the county in which you lived during the majority of the tax year. Full-year nonresidents should leave these boxes blank. Filing Status Your filing status must be the same as your federal income tax filing status for the tax year. See R.C. 5747.08(E). If you check “married filing separately,” enter your spouse’s SSN in the spaces provided. If you and your spouse filed a joint federal return, you must file a joint Ohio income tax return even if one or both of CAUTION you are nonresidents of Ohio. You may claim the nonresident credit (see the Ohio Schedule of Credits) for income not earned or received in Ohio. If you and your spouse filed separate federal returns, you must file separate Ohio returns. ! Note: Some school districts levy an income tax on their residents. See page 46 for more information. Check the box corresponding to your residency status for the school district number you entered on the return. If you are a part-year resident, enter the dates of nonresidency. Residency Status Tax Type Check the box corresponding to your residency status. If your filing status is married filing jointly, each spouse must indicate his/ her residency status. Check the box indicating the tax type of the school district for which you are filing this return. The list of school districts on pages 40-45 indicates the tax type of each taxing school district. If you checked the box for "part-year resident" or “nonresident,” write, in the space provided, the two-letter abbreviation of the state where you resided for the majority of the tax year. For more information on Ohio residency, see page 10. Ohio Nonresident Statement Nonresidents who meet certain required criteria and wish to establish an irrebuttable presumption of non-Ohio residency for the tax year may check these boxes instead of filing form IT NRS. The five required criteria are listed on page 48 under the heading, “What Criteria are Required to File the Ohio Nonresident Statement?” Nonresidents who file a joint return and both meet the required criteria can each check the appropriate box to establish an irrebuttable presumption of non-Ohio residency. Note: Individuals who do not meet the required criteria are still able to file as nonresidents. Residents and part-year residents cannot check these boxes to establish an irrebuttable presumption of non-Ohio residency. Extension Filer To request an extension of time to file your Ohio return, check the box indicating you filed federal form 4868 with the IRS for this tax year. Only taxpayers with a valid federal extension are allowed an extension of time to file their Ohio returns. For more information on filing extensions, see page 6. - 12 - For more information on the two tax types, see page 46. 2020 Ohio IT 1040 Ohio IT 1040 - Individual Income Tax Return Line 1 – Federal Adjusted Gross Income Enter the amount from your 2020 federal income tax return: ● Federal 1040, line 11; ● Federal 1040-SR, line 11; OR ● Federal 1040-NR, line 11. ! CAUTION Generally, line 1 of your Ohio income tax return must match your federal adjusted gross income as defined in the Internal Revenue Code. Zero or Negative Federal Adjusted Gross Income. If you have a zero or negative federal adjusted gross income, you must include a copy of page 1 of your federal return. See R.C. 5747.02(A)(3) and 5747.01(A). A foreign trust that files federal form 1040NR should not use the IT 1040 to file with Ohio. Such trusts must file form IT 1041. Line 2a – Ohio Adjustments (Additions) Ohio Schedule A lists the additions to your federal adjusted gross income. For more information about the additions you must make, see pages 14-15. ● 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). Enter the amount from Ohio Schedule A, line 10 on this line. You must include a copy of Ohio Schedule A with your return. Line 2b – Ohio Adjustments (Deductions) Ohio Schedule A lists the deductions from your federal adjusted gross income. For more information about the deductions you must make, see pages 15-18. ● 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). Enter the amount from Ohio Schedule A, line 39 on this line. You must include a copy of Ohio Schedule A with your return. Line 4 – Personal and Dependent Exemptions Ohio allows a dependent exemption for all dependents properly claimed on your federal tax return. Individuals claimed as dependents on another taxpayer's return are not eligible to take a personal exemption on their own return. The personal and dependent exemption is a graduated amount, based on your modified adjusted gross income as follows: Line 8a – Tax on Line 7a Calculate your tax on your Ohio income tax base less business income. ● All taxpayers can utilize the Income Tax Brackets found on page 32. ● If your nonbusiness taxable income is less than $107,000, your tax has been calculated for you in the Income Tax Table found on pages 32-37. Modified Adjusted Gross Income Personal/ Dependent Exemption $40,000 or less $2,400 Note: The Income Tax Table 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 in the Income Tax Table may be slightly lower or higher than the tax amount computed by using the Income Tax Brackets. $40,001 – $80,000 $2,150 See R.C. 5747.02(A)(3). More than $80,000 $1,900 Line 11 – Interest Penalty Enter the total number of exemptions you claimed in the spaces provided. Multiply that number by the appropriate exemption amount from the chart above and enter the result on line 4. Example: John and Mary claim their son Patrick as an exemption on their jointly filed federal income tax return. Their modified adjusted gross income is $75,000. Thus, they claim three exemptions totaling $6,450 on their Ohio return. Patrick works part-time after school and files his own tax return. Since Patrick is a dependent and his parents claim an exemption for him, he is not eligible for an exemption on his return. He should check the box indicating he can be claimed by someone else and enter $0 on line 4. Ohio Schedule J. Include a completed Ohio Schedule J, listing every dependent for whom you are claiming this exemption. Enter the full 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 adoption taxpayer identification number (ATIN), enter that number in the boxes for the dependent's SSN. If the dependent information is not provided, incomplete, or contains errors, you may be asked for supporting documentation. See R.C. 5747.025 and 5747.01(O). Ohio allows a personal exemption for you and, if filing a joint return, your spouse. Generally, if you are a wage earner and have Ohio withholding, you will not owe an interest penalty. If you have non-wage income or no Ohio withholding, use Ohio IT/SD 2210 to determine if an interest penalty is due. See R.C. 5747.09(D) and (E). Line 12 – Unpaid Use (Sales) Tax Report the amount of unpaid use (sales) tax due for the tax year. A worksheet and detailed explanation of Ohio's use tax are located on page 31. See R.C. 5747.083. Line 14 – Ohio Income Tax Withheld This line is for Ohio income tax withheld as reported on the Schedule of Ohio Withholding. Do not include: ● Taxes withheld for another state, a city, or a school district; OR ● Taxes withheld on your behalf by a passthrough entity reported to you on an Ohio IT K-1 (these amounts should be reported on line 37 of the Ohio Schedule of Credits). Schedule of Withholding. Include a completed Schedule of Ohio Withholding, listing every income statement (W-2, W-2G, 1099) for which you have Ohio income tax withheld. See the sample statements on pages 38-39. Do not list income statements that do not report Ohio income tax withheld. Place state copies of your income statements after the last page of your return. Do not include income statements that are handwritten, self-created, or generated by your tax preparation software. See R.C. 5747.08(H). - 13 - 2020 Ohio IT 1040 / Schedule A Line 15 – Payments and Credit Carryforward Amounts Enter the following amounts: ● Estimated payments (Ohio IT 1040ES); ● Extension payments (Ohio IT 40P); AND ● Any credit carryforward amount from your prior year Ohio IT 1040. Do not include: ● A prior year's refund that you requested but did not receive. (Contact the Department about any refund you requested but did not receive). ● Taxes paid by a pass-through entity, reported to you on an Ohio IT K-1. (Report these amounts on Ohio Schedule of Credits, line 37). See R.C. 5747.09(B). Line 17 – Amount Previously Paid (Amended Returns Only) When filing an amended return, enter the amount previously paid with your original and/or amended return on line 21. Line 19 – Overpayment Previously Requested (Amended Returns Only) Line 22 – Interest Due Line 25 - Credit Carryforward Interest is due from the unextended due date until the date the tax is paid. Generally, you do not owe interest if you are due a refund. An extension of time to file does not extend the payment due date. The interest rate for calendar year 2021 is 3%. Enter the portion of your refund you want applied to tax year 2021. This is only allowed on timely filed, original returns; it is not allowed on amended returns. Certain military servicemembers may not be subject to interest. See page 8 for more information. You may make a donation using this form if you have an amount on line 24. Your total donations (line 26g) cannot exceed line 24. Such donations will reduce the amount of refund you may receive. See R.C. 5747.08(G). Line 23 – Total Amount Due This is your total amount due. Do not mail cash. Make payment by: ● Electronic check; ● Credit or debit card; OR ● Paper check or money order. Make your check or money order payable to "Ohio Treas
Individual Tax Instructions
More about the Ohio Individual Tax Instructions Individual Income Tax TY 2020
Use this instructional booklet to help you fill out and file your individual income taxes for Ohio. 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.
We last updated the Individual Income Tax Instruction Booklet in February 2021, so this is the latest version of Individual Tax Instructions, fully updated for tax year 2020. You can download or print current or past-year PDFs of Individual 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|
|Form IT SD 100||School District Income Tax Return|
|Form IT 1040ES||Income Tax Estimated Payment Vouchers and Instructions|
|Form IT 40P||Income Tax Payment Voucher|
|Form IT 1040EZ||Ohio Individual Income Tax EZ Return|
Ohio usually releases forms for the current tax year between January and April. We last updated Ohio Individual Tax Instructions from the Department of Taxation in February 2021.
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 Individual Tax Instructions
We have a total of six past-year versions of Individual Tax Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2015 Oregon Income Tax, Full-Year Resident, Form 40 and Instructions, 150-101-043
2015 Oregon Income Tax, Full-Year Resident, Form 40 and Instructions, 150-101-043
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.