How do I estimate my State of Ohio income tax liability?
All Ohio residents with earned income will pay income taxes to the State of Ohio. Even if you received a refund in the previous year, you paid Ohio State income taxes. To estimate your current year’s liability, contact your tax preparer or review your previous year’s tax return. Your state tax liability is not necessarily the amount deducted from your paycheck or the amount refunded to you or owed to the State. Rather, the tax liability is the total amount owed to the State before determining whether there is a refund or an additional amount to pay. To estimate if you will have a tax liability in the coming year, review your tax liability from the previous year’s State of Ohio tax return (this amount would be on 1040 IT, line 8c). After considering whether there have been significant changes to your income this year, reviewing the prior year’s State of Ohio tax return will help to estimate whether you will have a similar liability in the current tax year. Contact your tax preparer with questions.
