Introduction
Tax season is here, and if you are a Wilmington, Ohio resident, there are several strategies you can use to maximize your refund and minimize your liability. Whether you are filing as an individual, a married couple, or a small business owner in Clinton County, understanding the tax landscape specific to our area can make a real difference in your bottom line.
At PJS Tax Accounting Service, we have been helping Wilmington families and businesses navigate tax season for over 25 years. Here are seven tips we share with our clients every year.
1. Know Your Ohio-Specific Deductions
Ohio offers several deductions that federal returns do not. For example, Ohio allows deductions for contributions to Ohio 529 college savings plans (up to $4,000 per beneficiary per year). If you have children or grandchildren heading to college, this is an easy deduction many people miss.
Additionally, Ohio residents can deduct certain business income on their state return through the Ohio Business Income Deduction, which can be a significant benefit for small business owners operating in Wilmington and Clinton County.
2. Don’t Forget Wilmington’s Municipal Income Tax
One of the most common mistakes we see at our office is forgetting about local municipal income taxes. Wilmington levies its own income tax, and if you live or work here, you need to file a local return in addition to your state and federal returns.
Key points to remember:
- Wilmington’s municipal tax rate applies to earned income
- If you work in another municipality that also has an income tax, you may be eligible for a credit against your Wilmington tax
- Retirement income is generally exempt from municipal tax in Ohio
If you are unsure about your local tax obligations, we can help you sort it out during your appointment.
3. Maximize Your Retirement Contributions
Contributing to a retirement account is one of the most effective ways to reduce your taxable income. For 2026, you can contribute up to $23,500 to a 401(k) plan, with an additional $7,500 catch-up contribution if you are 50 or older.
Traditional IRA contributions may also be tax-deductible depending on your income and whether you have a workplace retirement plan. Even if you cannot deduct the full amount, contributions to a Roth IRA grow tax-free — a powerful tool for long-term wealth building.
4. Track Your Home Office Expenses
If you work from home — whether full-time or part-time — you may be eligible for the home office deduction. This applies to self-employed individuals, freelancers, and independent contractors.
There are two methods for calculating this deduction:
- Simplified method: $5 per square foot of your home office, up to 300 square feet ($1,500 maximum)
- Regular method: Calculate the actual expenses of your home office, including a percentage of rent or mortgage interest, utilities, insurance, and maintenance
Many Wilmington residents who started working remotely in recent years are surprised to learn they qualify for this deduction.
5. Keep Detailed Records of Charitable Donations
If you donate to local organizations — the Clinton County Community Action Council, churches in the Wilmington area, the local food pantry, or other nonprofits — make sure you keep records of every contribution.
What qualifies:
- Cash and check donations to registered 501(c)(3) organizations
- Fair market value of donated clothing, furniture, and household goods
- Mileage driven for charitable purposes (currently 14 cents per mile)
- Out-of-pocket expenses incurred while volunteering
For donations over $250, you need a written acknowledgment from the organization. For donated items over $500, you may need to file Form 8283.
6. Understand the Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is one of the most valuable credits available, especially for working families with moderate incomes. For tax year 2026, the maximum credit for a family with three or more qualifying children is over $7,000.
Many eligible taxpayers in the Wilmington area do not claim the EITC simply because they do not know about it. If your household income falls below certain thresholds, you could be leaving thousands of dollars on the table.
At PJS Tax, we screen every client for EITC eligibility as a standard part of our preparation process.
7. File Early — or File an Extension
Filing your taxes early offers several advantages:
- Faster refund — the earlier you file, the sooner you receive your money
- Identity theft protection — filing early reduces the window for someone to file a fraudulent return in your name
- Less stress — getting your taxes done in February or March means no last-minute scramble in April
However, if you are not ready, it is better to file an extension (Form 4868) than to rush and make mistakes. An extension gives you until October 15 to file your return. Just remember that an extension to file is not an extension to pay — you still need to estimate and pay any taxes owed by the April deadline.
Get Professional Help in Wilmington
Tax law changes every year, and what worked last year may not work this year. Having an experienced professional review your return is the best way to ensure you are taking advantage of every deduction and credit available to you.
Ready to maximize your refund? Contact PJS Tax Accounting Service at (513) 706-0852 or schedule an appointment. We are located at 4609 W. US Highway 22/3 in Wilmington, Ohio and proudly serve clients throughout Clinton County.