Good News for Ohio Taxpayers
There’s good news for Ohio taxpayers this tax season, whether you’re an individual or a small business owner. These changes can offer savings and provide a quicker, more efficient filing process. Here are the tax changes in Ohio, and how they might impact your tax filing.
Higher Business Income Deduction
For the 2015 tax season, many business owners are entitled to deduct 75% of the first $250,000 of their net business income. Remaining income will be taxed based on a graduated rate with a maximum of 3%. The deductions rise even more in 2016 when business owners can deduct 100% of the first $250,000 of their net business income.
Income Tax Rates Are Lower for Individuals
Income tax rates for individuals has been reduced by 6.3% compared to 2014, which can provide a moderate reduction to your end of year tax bill.
Change in Tax Credits for Senior Citizens
The popular senior citizen and retirement income credits are no longer allowed for some taxpayers whose Ohio adjusted gross income exceeds $100,000. For those whose income falls below the $100,000 threshold the credits continue to be available.
If you are looking to donate your refund to a charity, there are two new charities to donate to on your tax return. The Wishes for Sick Children Donation grants the wishes of children with life-threatening illnesses, while the Ohio History Connection is an organization designed to preserve Ohio’s rich history. These charities join the funds for Military Injury Relief, State Nature Preserves, Breast/Cervical Cancer and Wildlife Species which were available last year.
Tax Fraud Update
Many individuals and business owners find themselves at risk of tax fraud each year, and Ohio is continuing to do something to combat this threat. Using the Identity Confirmation Quiz, tax filers will have confidence that their identity is protected and that only legitimate filers receive tax refunds. If you would like more information, visit the Ohio.gov website.
New Consolidated Forms
To make filing more efficient, three of the primary forms for individual tax filing have been consolidated into one universal form. Additionally, school district forms have also been consolidated. This will make the processing of your return more efficient and speed up the issuing of refunds to taxpayers.
If we can assist you with filing your return for the 2015 tax year, contact us at 513-858-6040 today.