Ohio Personal Tax Updates for 2012

Aug 22, 2012

The Ohio Department of taxation recently released the 2012 personal income tax brackets and the personal exemptions for taxpayers, spouse and dependents.

Each of the 2012 brackets incorporates a 2.1% increase over the corresponding bracket from 2011, rounded to the nearest $50.  The 2012 tax rates are unchanged from 2011.

To calculate Ohio personal income tax, the taxpayer computes taxable income and determines which bracket their taxable income falls within.  Then the taxable income is reduced by the lower bracket amount and the resulting balance is multiplied by the marginal tax rate.  To the computed marginal tax amount add the base tax liability to compute the personal income tax before any tax credits.

The personal income tax exemptions amount for 2012 will be $1,700, up from $1,650 in 2011. Taxpayers are allowed personal income tax exemptions for themselves, their spouse, and each qualified dependent.  Qualified dependents must match the taypayer’s federal return and follow the federal definitions with one exception.  Children claimed on their parent’s returns may also claim a $1,700 exemption on their own Ohio income tax return.  Each exemption is also entitled to a $20 exemption credit.

 

 


About the Author

Jeff is a Chief Financial Officer with B2B CFO® offering advisory services to small and mid-sized businesses. His clients are in professional services, manufacturing, IT support, equipment rental, lighting distribution and maintenance, concrete and aggregate, and automotive repair. With over 35 years of financial experience in varied industries, including construction related manufacturing and distribution, sporting goods, consumer products, and service companies, he has served firms ranging in revenue from $25M to $1B as a CFO, Treasurer and Controller. Twice Jeff has helped guide companies through bankruptcy. Jeff has taken a company public and has twice managed the external financial reporting requirements of a publicly-traded corporation.

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