Bookmark this page on your mobile

QR Code image

What is this?

Daily Court Reporter - News Important Ohio income tax changes signed into law


Important Ohio income tax changes signed into law

Ohio Governor John Kasich recently signed two bills – Senate Bill 22 and House Bill 24 – that enact three significant tax changes: one expands the deduction for medical costs effective retroactively for Tax Year 2017; two others address deductions for Tax Year 2018 and forward.

FOR TAX YEAR 2017 (H.B. 24):


This bill changes current law and retroactively allows a taxpayer to include the cost of certain subsidized health insurance premiums as a “medical care” expense. Medical care expenses that exceed 7.5% of an individual’s Federal Adjusted Gross Income (FAGI) are deductible.

To qualify as a medical expense the cost of the premium must be paid in ‘after tax’ dollars. Pre‐tax payments are not eligible. Most employee payroll deductions for health insurance are pre‐tax, and do not qualify.

A subsidized health insurance plan is one in which an entity ) pays a portion of an individual’s premiums for health insurance coverage. Medicare is the primary example of a subsidized plan that can now be included in the calculation.

NOTE: Persons who have already filed a 2017 Ohio Individual Income Tax return may file an amended 2017 return if this newly allowed expense enables them to claim the deduction for medical expense exceeding 7.5% of FAGI.

FOR TAX YEARS 2018‐2025 (S.B. 22):

This is the conformity bill that specifically incorporates IRS changes made by Congress since March 30, 2017. To align Ohio’s tax laws with recent federal tax law changes (i.e., Tax Cut and Jobs Act),

S.B. 22 includes the following two provisions:


Expands the Ohio’s 529 savings plan to allow tax deductible contributions toward private or parochial K‐12 tuition, in addition to previously allowed contributions for higher education. The maximum contribution is $4,000/year, per beneficiary.


Changes Ohio law that requires dependents to be claimed on a federal income tax return in order to be claimed on an Ohio return. Change continues Ohio’s existing allowance for dependent (and personal) exemptions on an Ohio income tax return.

For additional information, please visit or contact our taxpayer assistance staff at 1‐800‐282‐1780.

Date Published: April 26, 2018


Ohio Department of Taxation


Three men plead guilty to concealing sending money to Anwar Al-Awlaki

Three men pleaded guilty to their roles in concealing the provision of thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world.

Problem gambling: Know when to stop before you start

(BPT) The bright lights. The energy and laughter that fills the room. Casinos are fun and exciting to the vast majority of people but for some, they can be problematic.

Another substitute bill for affirmative self-defense proposal is proposed

A House committee recently adopted another substitute bill that further tinkers with legislation originally devised to codify an affirmative claim of self defense for Ohioans.

Some small steps can lead to businesses being more green

More companies are becoming more sustainable and eco-friendly each year.

Owner of payroll company indicted for stealing $914,000 from clients

A Putnam County woman was indicted on seven counts of bank fraud after she stole more than $900,000 from her clients, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.

Four people indicted for preparing hundreds of false tax returns

Four people from Ohio were named in a 31-count indictment for their roles in a conspiracy in which they filed more than 800 tax returns annually between 2012 and 2015 resulting in approximately $15 million in refunds being issued, a portion of which neither they nor their clients were entitled.

Let the power of compound interest help your 529 plan take off

If you’ve been to the movies, or watched a multitude of TV series recently, you’ve seen many, many superhero stories. These champions always stretch themselves to overcome obstacles and to come to others’ aid. There’s a superhero in the financial world as well, a college savings superhero – compound interest. Its super powers can really make your Ohio 529 college savings plan soar!

Assistance available to promote fruits, vegetables, flowers and nut crops in Ohio

State agriculture officials are looking forward to a new crop of specialty crop grant proposals in the coming weeks.

Bill designed to boost telemedicine in Ohio

Committee members in the Ohio House of Representatives took up a bill recently that would raise the profile of telemedicine services with regard to health benefit plans of Ohioans.

Naloxone rebate extended, more than $730,000 saved

Ohio Attorney General Mike DeWine announced recently that a rebate agreement that has saved Ohio agencies more than $730,000 on the cost of naloxone has been extended for another year.

Statewide dispute over traffic cameras continues at Supreme Court of Ohio

The Ohio Supreme Court on Tuesday, April 24th, heard four oral arguments, including a dispute between the state and the city of Toledo over traffic cameras.

Report: Ohio in top 10 for business growth

Ohio's year-over-year growth and new companies starting among 18 major industries last year placed it among the top 10 states for business creation.

Akron man and Barberton woman charged for defrauding insurance company

Two people were charged in federal court with mail fraud for defrauding an insurance company.

Ohio EPA updates findings on sources of nutrients impacting Ohio waters

As required by state legislation signed in 2015 (House Bill 64), Ohio EPA has completed its second statewide study identifying sources and estimating the annual amount of phosphorus and other nutrients flowing from the state’s watersheds into Lake Erie and the Ohio River. The study covers the Maumee, Portage, Sandusky, Vermilion, Cuyahoga, Great Miami, Scioto and Muskingum watersheds, and includes some direct tributaries to Lake Erie, which collectively represent surface water quality from 66 percent of the entire state.

Proposal would allow bystanders to sue police if an officer damages their smartphone

A Senate committee recently heard testimony of a Columbus lawmaker who wants to bolster protection of citizens’ free-speech rights as they pertain to recording the actions of law enforcement officers while on the job.

Tax breaks proposed for pro bono work

A bill proposing tax breaks for attorneys for pro bono legal services has gained little traction since its introduction in the Ohio House of Representatives nearly a year ago.

Attorney General DeWine announces applications now accepted for Teen Ambassador Board

Ohio Attorney General Mike DeWine recently announced that his office is now accepting applications for its Teen Ambassador Board.

New Albany man started making 3-D printed prosthetics in high school

Aaron Westbrook has gotten better tying his shoes with a single hand.

Housing authorities develop and operate low-income housing in Ohio

April 2018 was the 50th anniversary of National Fair Housing Month which celebrates the passage of the Fair Housing Act, signed into law by President Lyndon B. Johnson. The federal law was groundbreaking legislation and, half a decade later, public housing programs still work to eliminate discrimination and create equal opportunity in every community.

Dayton area tax preparer pleads guilty to filing false income tax returns with the IRS

David D. Hill, 34, of Dayton, Ohio, pleaded guilty to two counts of filing a false income tax return with the Internal Revenue Service (IRS).