Columbus–The Ohio House of Representatives passed unanimously Senator Eric Kearney’s (D-Cincinnati) legislation to boost savings rates among Ohioans. Senate Bill 194 enables anyone filing an Ohio income tax return to have their refund deposited directly into a retirement savings account.
“This is a common sense bill that provides a convenience for taxpayers and encourages Ohioans to save for retirement,” said Senator Kearney. “I am proud my legislation received overwhelming bipartisan support in the General Assembly.”
The legislation has the added benefit of saving taxpayers’ money by reducing the number of refund checks the State of Ohio has to mail. The state saves approximately $1.50 for every refund filed electronically compared to traditional paper checks. If only one in four tax filers uses this new retirement savings account option the state will save $1.5 million per year.
“With this bill all people have to do is check a box and their refund will be transferred electronically to their retirement account,” Kearney said. “This legislation is a win-win for taxpayers and the State of Ohio.”
The State of Ohio processes about 4 million tax returns each year with an average refund amount of $310. If just 25% of tax filers getting a refund take advantage of this option Ohio taxpayers will save $310 million toward their retirement.
The new option would apply to all income tax returns, regardless of whether they are filed on paper, electronically, or telephonically. The Department of Taxation currently offers direct deposit for a checking or savings account, but Senator Kearney’s plan marks the first time that a refund could be deposited directly into a retirement account. Those interested in taking advantage of the retirement savings option would simply provide their account information on their tax return.
The Ohio Senate passed SB 194 by a unanimous vote on February 17th. Following today’s vote in the House, Governor Ted Strickland will soon sign the bill into law.
“This is a common sense bill that provides a convenience for taxpayers and encourages Ohioans to save for retirement,” said Senator Kearney. “I am proud my legislation received overwhelming bipartisan support in the General Assembly.”
The legislation has the added benefit of saving taxpayers’ money by reducing the number of refund checks the State of Ohio has to mail. The state saves approximately $1.50 for every refund filed electronically compared to traditional paper checks. If only one in four tax filers uses this new retirement savings account option the state will save $1.5 million per year.
“With this bill all people have to do is check a box and their refund will be transferred electronically to their retirement account,” Kearney said. “This legislation is a win-win for taxpayers and the State of Ohio.”
The State of Ohio processes about 4 million tax returns each year with an average refund amount of $310. If just 25% of tax filers getting a refund take advantage of this option Ohio taxpayers will save $310 million toward their retirement.
The new option would apply to all income tax returns, regardless of whether they are filed on paper, electronically, or telephonically. The Department of Taxation currently offers direct deposit for a checking or savings account, but Senator Kearney’s plan marks the first time that a refund could be deposited directly into a retirement account. Those interested in taking advantage of the retirement savings option would simply provide their account information on their tax return.
The Ohio Senate passed SB 194 by a unanimous vote on February 17th. Following today’s vote in the House, Governor Ted Strickland will soon sign the bill into law.
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