Individual Tax Filing Due Date

On March 24, 2021, Ohio Tax Commissioner Jeff McClain announced that Ohio will follow suit with the federal government and IRS in extending the deadline to file and pay Ohio individual income taxes for tax year 2020.  The new deadline will now be May 17, 2021.

Ohio will waive penalty on tax due payments made during the extension.  It is important to note however, that first quarter estimated payments for individuals for tax year 2021 are not impacted by the extension and must still be paid by April 15th.  The extension does not apply to business tax filings due April 15, 2021 in the state and municipalities.

Senate Bill 18 – Tax Conformity

On March 24, 2021, the Ohio Senate and House passed Senate Bill 18, which now awaits Governor Mike DeWine’s signature.  The bill includes the following provisions:

  • Updated Internal Revenue Code (IRC) conformity to incorporate the federal law changes made by the Consolidated Appropriates Act of 2021 (CAA) and American Rescue Plan Act of 2021 (ARPA). By updating IRC conformity, expenses paid with PPP loan proceeds are now considered deductible expenses for Ohio tax purposes.
  • Second draw PPP loan amounts forgiven under the CAA are now exempt from commercial activity tax (CAT). First draw forgiven loan amounts were previously exempted.
  • Bureau of Workers’ Compensation (BWC) dividends paid are now exempt from CAT.
  • Exclusion from gross income for the first $10,200 received in unemployment benefits for individual taxpayers with $150,000 or less in federal adjusted gross income ($300,000 for joint filers).

Takeaways

Once signed by Governor DeWine, Senate Bill 18 will provide relief in many areas that were causing taxpayers to hold back from filing their 2020 tax returns while awaiting additional guidance and relief from the state.  The one-month extension provides taxpayers additional time for completing their 2020 Ohio individual income tax returns.  However, individual taxpayers must be mindful that the extension does not apply to 2021 quarterly estimates, as a first quarter estimate is still due April 15, 2021.

Additional Resources

Stay tuned as we monitor this legislation for potential changes that could impact you.  As always, please contact us if you have any questions or would like to talk to one of our COVID-19 Advisory Team members – we’re here to help.

Barnes Dennig COVID-19 Advisory Team