Exemptions change hits Ohioans
The letter on Feb. 16, 2014, about the Homestead Exemption change points out the fact that new 65-year-olds may not be eligible for the tax break. I want to emphasize that this change will affect more seniors than appears on the surface.
The $30,500 income limit includes both the applicant’s and spouse’s incomes. All soon-to-be 65-year-olds should look at their earned and pension incomes (especially dual income families), as this limit is easily attainable.
Also, having done my own taxes for a number of years, another tax change surprise came to light this year while filing my Ohio state taxes. Starting with the 2013 tax year, the $20 tax credit is eliminated for taxpayers with an adjusted income above $30,000 (see line 9 in the Ohio tax booklet).
Some may say this is only $20, but keep in mind this is a $20 credit per personal exemption. A family of four could lose an $80 tax reduction. This credit comes directly off your tax liability, so it is significant for many families.
With all the rhetoric about protecting the middle class and seniors, it seems that according to the state of Ohio an income above $30,000 puts a family in an upper income status. You decide.