Title: OhioIRS Tax Liaison Forum
1Ohio/IRS Tax LiaisonForum
- Update Ohio State and School District Income
Taxes July 27, 2006
2 3Update Ohio State and School District
Income Taxes
4 Update Ohio State and
School District Income Taxes
5 Update Ohio State and
School District Income Taxes
- Approximately 3 million taxpayers have
electronically filed the year 2005 Ohio income
tax return
6 Update Ohio State and
School District Income Taxes
- Approximately 3 million taxpayers have
electronically filed the year 2005 Ohio income
tax return (11 increase over last year). -
7 Update Ohio State and
School District Income Taxes
- Approximately 3 million taxpayers have
electronically filed the year 2005 Ohio income
tax return (11 increase over last year). - 5,288,888 total Ohio income tax returns
(electronic and paper) filed as of July 26, 2006.
8 Update Ohio State and
School District Income Taxes
- Approximately 3 million taxpayers have
electronically filed the year 2005 Ohio income
tax return (11 increase over last year). - 5,288,888 total Ohio income tax returns
(electronic and paper) filed as of July 26, 2006.
So, about 60 have filed electronically.
9 Update Ohio State and
School District Income Taxes
- For taxable year 2004 __ of the taxpayers
paid 82 of the Ohio income tax.
10 Update Ohio State and
School District Income Taxes
- For taxable year 2004 30 of the taxpayers
paid 82 of the Ohio income tax.
11 Update Ohio State and
School District Income Taxes
- For taxable year 2004 30 of the taxpayers
paid 82 of the Ohio income tax. - For that year these taxpayers had federal AGI
of _____ or more. -
12 Update Ohio State and
School District Income Taxes
- For taxable year 2004 30 of the taxpayers
paid 82 of the Ohio income tax. - For that year these taxpayers had federal AGI
of 50,000 or more. -
13 Update Ohio State and
School District Income Taxes
- For taxable year 2004 30 of the taxpayers
paid 82 of the Ohio income tax. - For that year these taxpayers had federal AGI
of 50,000 or more. - Total 2004 tax was ___ billion
14 Update Ohio State and
School District Income Taxes
- For taxable year 2004 30 of the taxpayers
paid 82 of the Ohio income tax. - For that year these taxpayers had federal AGI
of 50,000 or more. - Total 2004 tax was 8.8 billion
15 Update Ohio State and
School District Income Taxes
- For taxable year 2004 30 of the taxpayers
paid 82 of the Ohio income tax. - For that year these taxpayers had federal AGI
of 50,000 or more. - Total 2004 tax was 8.8 billion so, these 30
paid in 7.2 billion (82 of 8.8 billion).
16 Update Ohio State and
School District Income Taxes
- For taxable year 2004 30 of the taxpayers
paid 82 of the Ohio income tax. - The remaining 70 had federal adjusted gross
income of less than 50,000 with an average
federal AGI of ______.
17 Update Ohio State and
School District Income Taxes
- For taxable year 2004 30 of the taxpayers
paid 82 of the Ohio income tax. - The remaining 70 had federal adjusted gross
income of less than 50,000 with an average
federal AGI of 21,888.
18 Update Ohio State and
School District Income Taxes
- For taxable year 2004 30 of the taxpayers
paid 82 of the Ohio income tax. - The remaining 70 had federal adjusted gross
income of less than 50,000 with an average
federal AGI of 21,888.Note that MFS filers
and college student filers skew downwards the
21,888 average.
19 Update Ohio State and
School District Income Taxes
- Progressive income taxation
20 Update Ohio State and
School District Income Taxes
- Progressive income taxationIf income doubles
from 10,000 to 20,000, Ohio income tax
increases four-fold (from 102 to 408).
21 Update Ohio State and
School District Income Taxes
- Progressive income taxationIf income doubles
from 10,000 to 20,000, Ohio income tax
increases four-fold (from 102 to 408). - If income doubles from 20,000 to 40,000,
Ohio income tax increases three-fold (from 408
to 1,225).
22 Update Ohio State and
School District Income Taxes
- Progressive income taxationIf income doubles
from 10,000 to 20,000, Ohio income tax
increases four-fold (from 102 to 408). - If income doubles from 20,000 to 40,000,
Ohio income tax increases three-fold (from 408
to 1,225). - If income doubles from 100,000 to 200,000,
Ohio income tax increases 2.5 times (from 4,219
to 10,539).
23 Update Ohio State and
School District Income Taxes
- (End of discussion of statistics)
24 Update Ohio State and
School District Income Taxes
- Ohio resident tax credit and division (B)(4)
of Ohio Revised Code section 5747.05
25 Update Ohio State and
School District Income Taxes
- Ohio resident tax credit and division (B)(4)
of Ohio Revised Code section 5747.05 (effective
June, 2005 and amended March, 2006)
26 Update Ohio State and
School District Income Taxes
- Ohio resident tax credit and division (B)(4)
of Ohio Revised Code section 5747.05 (effective
June, 2005 and amended March, 2006) - No credit shall be allowed under division (B)
of this section for income tax paid or accrued to
another state or to the district of Columbia if
27 Update Ohio State and
School District Income Taxes
- Ohio resident tax credit and division (B)(4)
of Ohio Revised Code section 5747.05 (effective
June, 2005 and amended March, 2006) - No credit shall be allowed under division (B)
of this section for income tax paid or accrued to
another state or to the district of Columbia if
the taxpayer, when computing federal adjusted
gross income, has directly or indirectly deducted
or was required to directly or indirectly deduct,
the amount of that income tax. -
28 Update Ohio State and
School District Income Taxes
- Ohio resident tax credit and division (B)(4)
of Ohio Revised Code section 5747.05 (effective
June, 2005 and amended March, 2006)
and - March, 2006 information release.
29 30 Update Ohio State and
School District Income Taxes
31 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesDependency
exemption 1,400. -
32 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesDependency
exemption 1,400.MSA amount ___. -
33 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesTax rates
34 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesTax rates
another 4.2 reduction from year 2004 rates
35 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesTax rates
another 4.2 reduction from year 2004 rates (so,
total reduction of 8.4).
36 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesCredit if line
5 -- Ohio taxable income -- is no more than
10,000
37 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesCredit if line
5 -- Ohio taxable income -- is no more than
10,000 102 (year 2005 107).
38 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesTuition expense
deduction no longer available.
39 Update Ohio State and
School District Income Taxes
- Year 2006 Return Changes Deduction
available for certain Ohio National Guard
benefits
40 Update Ohio State and
School District Income Taxes
- Year 2006 Return Changes Deduction
available for certain Ohio National Guard
benefitsReceipt of Ohio Adjutant General-
authorized reimbursement for certain group life
insurance premiums paid, and
41 Update Ohio State and
School District Income Taxes
- Year 2006 Return Changes Deduction
available for certain Ohio National Guard
benefitsReceipt of Ohio Adjutant General-
authorized payment of death benefits received as
a beneficiary of an active duty member of the ONG
while performing active duty.
42 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesThe taxpayer
must compute interest penalty on all income tax
returns not just ODT form IT 1040.
43 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesThe taxpayer
must compute interest penalty on all income tax
returns IT 1040EZ
44 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesThe taxpayer
must compute interest penalty on all income tax
returns IT 1040EZ, SD-100,
45 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesThe taxpayer
must compute interest penalty on all income tax
returns IT 1040EZ, SD-100, - SD 100E,
46 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesThe taxpayer
must compute interest penalty on all income tax
returns IT 1040EZ, SD-100, - SD 100E, IT 4708,
47 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesThe taxpayer
must compute interest penalty on all income tax
returns IT 1040EZ, SD-100, - SD 100E, IT 4708, IT 1140,
48 Update Ohio State and
School District Income Taxes
- Year 2006 Return ChangesThe taxpayer
must compute interest penalty on all income tax
returns IT 1040EZ, SD-100, - SD 100E, IT 4708, IT 1140, and IT 1041.
49 Update Ohio State and
School District Income Taxes
50 Update Ohio State and
School District Income Taxes
- Year 2006 SDIT Changes
- Circleville SDIT is levied only on IRS
Schedule SE income and wages.
51 Update Ohio State and
School District Income Taxes
- Year 2006 SDIT Changes
- Circleville SDIT is levied only on IRS
Schedule SE income and wages. - So, no Circleville SDIT on rental income,
retirement benefits, lottery winnings, IRS
Schedule B income, capital gains, etc.
52 Update Ohio State and
School District Income Taxes
- Year 2006 SDIT Changes
- Circleville SDIT is levied only on IRS
Schedule SE income and wages with no
deductions.
53 Update Ohio State and
School District Income Taxes
- Year 2006 SDIT Changes
- Circleville SDIT is levied only on IRS
Schedule SE income and wages with no
deductions. - So, no deduction for alimony paid, IRS
Schedule SE tax paid, IRA Keogh contributions,
capital losses, etc.
54 Update Ohio State and
School District Income Taxes
- Year 2007 SDIT Possible
Changes - August, 06 ballot four school districts have
on the ballot the traditional base income tax
issue.
55 Update Ohio State and
School District Income Taxes
- Year 2007 SDIT Possible
Changes - November, 06 ballot at least two school
districts have on the ballot the alternative
base income tax issue.
56Update Ohio State and School District
Income Taxes