COLUMBUS, Ohio (AP) – Ohio’s Department of Taxation is now accepting 2014 individual income tax returns, and taxpayers could see some changes.
Tax Commissioner Joe Testa recently reminded residents that Ohio increased the personal exemption for those earning less than $40,000 annually. It rose to $2,200 from $1,700. For those with incomes between $40,000 and $80,000 a year, it was boosted to $1,950 from $1,700.
“Last year, as a result of Ohio’s improving economy, stronger than expected state revenue and greater efficiencies enacted to manage state government, additional tax reductions were made possible,” Testa said in a news release.
A 1-percent income tax cut due next year was moved up and made retroactive to Jan. 1, 2014, so taxpayers will see the benefit a year early.
Ohioans claiming dependents should know that the child may only be claimed once for a personal exemption, but not twice. For instance, college students claimed as a dependent on the parent’s Ohio income tax return may not also claim the personal exemption on their individual returns.
Ohio taxpayers also could get their refunds later this year because of new security measures aimed at preventing fraud, the department has said. Additional safeguards could delay refunds up to 15 or 30 days, and some taxpayers might have to take a quiz for their return to be processed.
Other changes include:
-A temporary boost in a tax deduction for small businesses, which jumped to 75 percent from 50 percent for the 2014 tax year only.
– An increase of the Earned Income Tax Credit to 10 percent from 5 percent of the federal credit.
– For certain adoptions, an increase in the maximum amount available for the adoption credit, as well as the carry forward period for unused amounts.
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