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Electronic filing starts Jan. 23, ODT envisions upgrades to income tax filing

Written on Jan 20, 2023

The opening day for electronic filing of 2022 Ohio individual income tax and/or school district income tax returns is Monday, Jan. 23, 2023. The IRS will also begin accepting 2022 federal income tax returns that day.

Ohio taxpayers will find several new changes that could impact the preparation of the state income tax return.  The following are a few of the more important changes:

  • All tax brackets have been adjusted for inflation. As a result, taxpayers with taxable income of $26,050 or less will pay no income tax. Additionally, Ohio taxable nonbusiness income in excess of $115,300 is taxed at 3.99%. 

  • A new addition and credit are applicable to investors in a pass-through entity that files the IT 4738.  Senate Bill 246 and SALT cap parity was an OSCPA legislative priority enacted in 2022. 

  • A new, nonrefundable credit is available for employing certain persons enrolled in a certified vocational training program (work-based learning program). 

In the future, Ohioans and their tax preparers could more easily file and pay personal and school district income taxes online through a new portal under plans envisioned in the Ohio Department of Taxation’s (ODT) FY24-25 budget request, now under consideration for inclusion in Gov. Mike DeWine’s third biennial budget proposal. 

Among ODT priorities outlined in the budget request is the completion of Project NextGen, the name for the new Ohio Tax System for the administration of the personal income tax and school district income tax. Contractor Fast Enterprises, which lists the majority of U.S. states among its clients, is already at work at the department’s Northland offices in Columbus. 

“The product includes e-services that provide secure taxpayer and tax practitioner self-service functions via the Internet. Taxpayers will be able to view account statuses, inspect filing and payment histories, and file and pay online,” the budget request states, anticipating a September 2023 rollout, in time for use for the tax year 2023 filing season in early 2024. 

The deadline for filing both the Ohio and federal tax return is April 18, 2023. As a reminder, a request for a filing extension does not extend your payment due date.