Without much press, Governor Kasich signed the budget bill into law with a couple of changes that impact individuals in Ohio.
- Small Business Owners will continue to receive favorable tax treatment with 100% of business income deductible up to $250k per year. Above that level, it is taxed at a flat 3%.
- Parents with Kids in College will receive a nice perk when the Ohio CollegeAdvantage 529 deduction raises from $2,000/yr to $4,000/yr.
- All Taxpayers will benefit from the inflation adjustments to the tax brackets and personal exemptions for 2017 and 2018. Some may benefit from the elimination of the bottom 2 tax brackets (now 7 brackets instead of 9).
There were also changes to the sales and use taxes, municipal income tax and Commercial Activity Tax (CAT Tax). To read a summary of all the changes from the Ohio Society of CPA’s click HERE.
To discuss how to take advantage of the Small Bussiness Owners credit or the new higher limits on college savings contact me!