The state of Ohio has one of the most injurious marriage penalties in the country.
Most people are not aware that by filing separate tax returns they dramatically reduce their state income tax liability. In general, the closer the spouses wages are, the more like a separate filing will save tax dollars.
In our practice, approximately 15% of married filers benefit from filing separate returns.
The trap... your filing status for Ohio must be the same as the federal return. However, any extra tax on your federal returns may be offset by the the savings on your state returns.
Recommendation. Prepare your return both ways to see which way results in more money in your pocket.
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