What’s New for the 2023 Tax Year Filing Season in Ohio – Highlights
There are big changes in play for Ohio taxpayers this year. The State of Ohio has implemented many changes for 2023, including the implementation of a new online system for Ohio taxpayers and tax preparers, a universal payment coupon, a redesign of the school district income tax return, and many new tax credits.
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This is a new online system for Ohio taxpayers and preparers currently designed only for individual and school district income taxes. This new online portal can be used to view and file returns, view and respond to notices, and much more.
Ohio Universal Payment Coupon (OUPC)
OUPC is Ohio’s new coupon for making individual and school district income tax extensions and estimated tax payments. Important to note – there is only one SSN entered on a coupon – payments can no longer be joint. If a married couple intends to file separately, extension and estimated tax payments should be made separately as payments follow the SSN on the coupon.
School District Income Tax Return (Form SD 100)
The School District Income Tax Return (Form SD 100) has been redesigned so taxpayers who need to file in more than one taxing school district can do so on a single return. If filing for more than one school district, taxpayers will calculate a single overpayment or tax due amount. Each taxing school district is eligible for the $50 senior citizen credit.
New additions to the Ohio Schedule of Credits
There are many nonrefundable credits new to the Ohio Schedule, including a credit for beginning farmers who participate in a financial management program, a Welcome Home Ohio Credit for developers who rehabilitate or construct qualifying residential property, a credit for the sale or rental of agricultural assets to beginning farmers, and credits for the development of single-family housing.
The adoption credit was repealed at the end of 2022, but a 5-year credit carryforward remains through 2027. The credit was replaced by the new Ohio adoption grant program – payments received are deductible from Ohio adjusted gross income (AGI) only if included in federal AGI.
Looking ahead to 2024
Ohio income tax brackets will be reduced to two brackets of 2.75% and a top bracket of 3.5% (from 3.75%). Ohio taxable income up to $26,050 remains nontaxable. In addition, new deductions in 2024 including a deduction for contributions to a homeownership savings account used to pay down payment and closing costs for the purchase of a primary residence. The maximum yearly deduction is $5,000 per contributor per account ($10,000 per account for Married Filing Jointly).
More to explore
You may also be interested in top tax planning tips for 2024, what the Supreme Court’s upcoming ruling in the Moore case might mean for you, the current state of sunsetting tax provisions from the Tax Cuts and Jobs Act of 2017, and news about the Ohio Scholarship Donation Credit.
If you have questions or are looking for smart strategies to reduce your tax burden, connect with us to set up a free consultation with one of our top tax pros. As always, we’re here to help.