COLUMBUS (WCMH) — As soon as Ohio Governor Mike DeWine signs the bill passed by the State Legislature on Wednesday, dozens of time sensitive issues will be addressed, including moving the state income tax deadline for individuals to match what the federal government has done.
The new deadline will be July 15th for individuals filing their 1040’s but businesses will still have to meet their normal deadlines for things like payroll taxes, excise taxes, and others. Additionally, gift and estate taxes are also due at their normal times and have not been pushed back.
If you are subject to estate tax, then you probably have enough money to have hired a CPA who already knows these things.
For the rest of us, this change brings clarity and potentially a sense of ease. But tax workers say it should not bring a sense of lethargy, especially if you could be getting a refund this year.
With the economic situation what it is in this global health crisis, getting your hands on your refund as soon as possible may be a massive benefit. Preparers say you should get your taxes done now if you think you are getting that refund and you can set it up to get the refund through direct deposit.
The benefit of doing that is, if the stimulus package that is being considered by Congress passes as it is now, the money people would be getting will be automatically sent to taxpayers. The mode of delivery would be whatever the government has on record.
If you filed your taxes last year for 2018, or this year for 2019, and chose to get a direct deposit the money would go to that account without you having to do anything.
If you filed and got a refund check in the mail, the stimulus money would also be sent by check. If you want the money to arrive faster than that, having your refund sent via direct deposit this year may work out as long as you file right away because that would be the most recent mode on record.
The other good thing about how the stimulus package is currently structured is the money itself is tax-free and tax workers say this will be a big help. If the money ends up being considered taxable, you would have to pay the taxes on it like it was income for this year on next year’s return.
Depending on how much you get, what tax bracket you’re in and other factors, that could be hundreds of dollars. The hope for many at this time is nothing changes and it remains tax-free.
Changing it to taxable income would mean that it shouldn’t be automatic and people would be expected to ask for it. If that happens, tax workers say you would want to think about the liability of accepting the money and having to pay the taxes on it later.
For now though, nothing is coming until the measure passes through Congress and gets signed by President Donald Trump.