How to Calculate Ohio State Income Tax

Income tax is a type of personal tax that is levied on the total income of an individual. Each state in the United States has slightly different methods for calculating their state income tax. Use these steps to calculate personal income tax for Ohio residents.

Steps

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    Organize your records in one place.
    • Make sure that you have wage information from W-2's, capital gains information and inheritance. Independent contractors need a separate 1099 form. Refer to the Ohio Department of Taxation site for information on what qualifies as personal income.
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    Determine whether you are a full-time or part-time resident of Ohio.
    • Even part-time residents may pay state income tax, but the amount is calculated by the amount of time you have spent residing in the state. You will need to complete Schedule D if you are a part-year resident to receive proper credit.
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    Research the various income levels for filing. The Ohio State Tax website outlines the circumstances under which you would not be required to file.
    • For example, if there was no Ohio income withheld, you are single plus your federal gross adjusted gross is less than or equal to $11,600 plus you have no Schedule A adjustments, there is no requirement to file Ohio state taxes.
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    Determine the amount of your annual income using your prepared financial and wage information. Be sure to include all forms of income.
    • If you are self-employed, you will need to complete a Schedule C to determine your actual income earned.
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    Determine your filing status: single, head of household, married or married filing separately. If you are uncertain of your filing status, consult the Ohio Department of Taxation website for explanations of each.
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    Calculate your tax deductions. Subtract this amount from your gross income to determine adjusted gross income.
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    Find the withholding tables on the Ohio State Tax website.
    • Ohio determines the percentage of tax due through breaking income down into several levels. For example, if your taxable income is between $40,000 and $80,000, you would pay taxes of $1337.20 plus a 5.21% on any amount over $40,000.

Tips

  • You can file online at the Ohio Department of Taxation website. The website has information to guide you through each step of online filing.
  • Call the Ohio State Department of Taxation Individual Taxpayer Assistance number if you have questions. The toll free number is 1-800-282-1780.
  • Consult a tax professional if you do not feel confident to file on your own. This is especially true for special circumstances such as military families, capital gains or inheritance taxes.

Warnings

  • Do not attempt any type of "creative accounting" when calculating your income and taxes. It is a serious offense to defraud a government agency.


Article Info

Categories: Taxes and Fees