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More Ohioans Get Tax Refund

 
Posted Friday, April 18th 2014 @ 12am

Tax refunds from the state of Ohio are about 43 percent more this year than last. The Ohio Department of Taxation says the average refund is $505 this year. That's up from last year's $288.

 

More than 3.2 million Ohioans claimed a refund, compared to 2.9 million a year earlier.

 

The Department of Taxation says the increase is mostly due to changes to the state tax codes made last June. Those changes didn't really kick in until September.

 

"Essentially you got nine months of retroactivity of a 9 percent reduced witholding rate. That means that a lot more people are going to get refunds, and it doesn't surprise me that the dollar figure would go up," said Ohio Tax Commissioner Joe Testa.

 

The changes also created the Ohio Earned Income Tax Credit and included a 50 percent deduction that small businesses could apply to the first $250,000 of net income.

 

The Department of Taxation estimated the savings this year to small businesses will be about $147.5 million. Nearly 238,000 filers had claimed the deduction as Tuesday’s deadline approached.

 

More than 512,000 taxpayers had claimed the EITC, saving nearly $62.4 million, according to Testa.

 

"More Ohioans are getting to keep more of their own money and that is absolutely good news," he said.

 

The total impact of the tax changes won't be known until later this year. Many small businesses file for extensions and have until October 15 to file their taxes.

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