State of Ohio Tom Tosuksri, Cleveland Housing Network 1 Ohio Return • Any taxpayers living in or working in Ohio during any part of the tax year is required to file an Ohio return • Much of the Ohio return is completed off of the Federal return, so much of it is filled out through the Taxwise software • More information can be found on: • http://tax.ohio.gov • (800) 282-1780 2 OH Credits • All OH credits are Non-refundable o Does not result in a larger refund, only more of tax already paid refunded • Automatic Credits: system calculated o Exemption Credit – based on how many personal and dependent exemptions claimed on federal, $20 each o Joint Filing Credit – for married couples, % based on income o Earned Income Credit - % based on Federal EIC • Manual Credits: must determine eligibility o Retirement Income Credit & Income Exclusions o Adoption Credit o Part Year Resident Credit 3 Retirement Credits • Retirement Income Credit o Up to $200 for a Married Couple o Credit for any Regular Distributions of Pension/Annuity Income • Distribution code must be ‘2’ or ‘7’ on 1099-R • Early Distributions do not qualify o Check the box on OH 1040 PG 4, Line 51 4 Retirement Credits • Special Income Exclusion for Retirement Income • Distributions due to Total & Permanent Disability: o Distribution Code must be ‘3’, not taxable in Ohio o Must check box “Check if disability and the taxpayer is disabled” o Ohio will include an adjustment up to the amount of distribution on OH 1040 PG 3, line 42 5 Retirement Credits • Special Income Exclusion for Retirement Income • Distributions due to Death: o Distribution Code must be ‘4’, not taxable in Ohio o Tax preparer must manually override adjustment to the amount of distribution on OH 1040 PG 3, line 42 6 Adoption Credits • Non-refundable credit for Adoption in the eligible tax year • Pair with the filing of Federal Form 8839, Qualified Adoption Expenses • If Federal Adoption Expenses exceed $1,500, put $1,500 on OH 1040 PG 2, Line 15 • If Federal Adoption Expenses are less than $1,500, put amount of Expenses on that line 7 Part Year Resident Credits • If a taxpayer lived in more than one state in the tax year, taxpayer must still file OH return and report ALL income earned in all states • First, on Main Info Page, indicate Part-year residency by entering resident states 8 Part Year Resident Credits • Next, enter residency dates on OH 1040 pg 1 9 Part Year Resident Credits • On Form W-2’s make sure to indicate the States in which income was received on Line 15 10 Part Year Resident Credits • Verify Amounts allocated on PY Res Wkt, Allocation of Income, Part-Year Resident States Worksheet 11 Part Year Resident Credits • Verify Credit on OH 1040 PG 4, OH Schedule D • Taxpayer will still be assessed at full income, but tax liability for non-OH income will be offset by credit 12 Finishing up Return • School District Codes – search by Zip Code o https://thefinder.tax.ohio.gov/StreamlineSalesTaxWeb/default_schooldistri ct.aspx o Cleveland: 1809; Euclid 1813; Cle Hts/U Hts 1810; E. Cle 1812; Shaker 1827; Maple Hts: 1818; Garfield Hts: 1815; Warrensville Hts: 1831; Bedford: 1803 • Penalties of Perjury: Check boxes for Taxpayers • All items below Penalties of Perjury to be completed by Site Coordinator and saved as default • Multiple W-2’s o Add OH W2 for each Federal W2 to match, check box to verify 13 Dealing with Refund • OH 1040 PG 2, Line 31 amount shows refund • Use only first 2 options: Direct Deposit or Check • You do NOT have to enter any bank account information on this page, use OH Dep Pg 1 14 Dealing with Refund • Once selected, OH Dept Pg 1 and Pg 2 will appear • Check the first box to use the Routing/Acct Number from Federal 1040 PG 2 • Check the second box to enter a different account (to be used if no Federal Refund) 15 Dealing with Balance Due • OH 1040 PG 2, Line 31 amount shows amount due • Use only last 2 options: Electronic Funds Withdrawal or Mail in Payment • If Electronic Funds Withdrawal, enter bank account information, date of debit, and amount debited o Does not have to be full amount, but any unpaid balance will begin to accrue interest on April15th • If Mail in Payment, Form OH 40P has been generated for taxpayer to use o Ohio Department of Taxation, PO Box 182131, Columbus, OH 43218-2131 16 Dealing with Balance Due 17 Not Filing State? • If a taxpayer is using Wage & Income Transcripts without any State withholding information, or does not file for any reason, you can disable the state return from this tax year: • On the Main Info Page, Check the box ‘not preparing a state return’, and delete the state from the resident field 18