The Office of Tax and Revenue (OTR) announced today that it is following the lead of the Internal Revenue Service (IRS) and opening the District of Columbia’s tax filing season on Monday, January 28.

As the filing season begins, OTR reminds taxpayers and tax professionals of the following tax changes that will take effect for the tax filing season:

• Individual Income Tax Filing Deadline: The deadline to file income tax returns for tax year 2018 is Monday, April 15, 2019.
• Tax Refunds: The Office of Tax and Revenue’s enhanced security measures to safeguard tax dollars and combat identify theft/tax refund fraud may result in longer processing times for some tax returns and associated refunds. The processing window for selected tax returns is approximately 25 business days.
• Standard Deduction: Beginning with tax year 2018, the District standard deduction conforms to the federal standard deduction and includes both a basic standard deduction and, if applicable, additional standard deductions for taxpayers and spouses or registered domestic partners who are blind and/or age 65 and older in the amount of $1,300 ($1,600 if single or head of household). Pursuant to the federal tax reform that was passed by Congress in 2017, the basic standard deduction for tax year 2018 is as follows:
  • Single: $12,000
  • Head of Household: $18,000
  • Married/Registered Domestic Partners Filing Jointly: $24,000
  • Married/Registered Domestic Partners Filing Separately: $12,000
  • Dependents:  See D-40 Worksheet for Dependent Filers
  • If born before January 2, 1954, or blind, an additional standard deduction of $1,300 ($1,600 if single or head of household) is allowed, by using Schedule S, Calculation G-1.  When married filing separately, taxpayers may take an additional standard deduction for their spouse/registered domestic partner only if their spouse/registered domestic partner had no gross income, is not filing a return, and cannot be claimed as a dependent by another taxpayer.
• Personal Exemptions: Beginning with tax year 2018, the District personal exemption conforms to the federal personal exemption. The amount of both the federal and District personal exemption is zero. (The District personal exemption for fiduciaries is zero for estates and $100 for trusts.)
• Low Income Tax Credit: The District low income tax credit was repealed for tax years beginning with 2018.
• Itemized Deductions: The District generally allows the same itemized deductions allowed under the Internal Revenue Code for federal individual or fiduciary income tax returns.  Pursuant to the federal tax reform that was passed by Congress in 2017, many itemized deductions previously allowed under the Internal Revenue Code have been eliminated or modified beginning with tax year 2018.  Accordingly, many of the itemized deductions previously allowed for District taxpayers are now eliminated or modified.
• State and Local Tax Deduction: Pursuant to the federal tax reform that was passed by Congress in 2017, the itemized deduction allowed under federal law for the payment of state and local taxes is limited to $10,000 per year for single and married filing jointly taxpayers and $5,000 per year for married filing separately taxpayers. The District does not allow a deduction for income taxes but allows a deduction for property taxes. The District will continue to allow a deduction for property taxes paid and will not limit that deduction to $10,000. For more information, see Calculations D (pg. 26) and F (pg. 28).
• Schedule H: The Homeowner and Renter Property Tax Credit amounts for tax year 2018 are:
  • Property tax credit remains $1,025
  • Schedule H federal AGI eligibility threshold for under age 70 increases from $50,500 to $51,000
  • Schedule H federal AGI eligibility threshold for age 70 and older increases from $61,900 to $62,600
• Early Learning Tax Credit:  For tax year 2018 only, eligible taxpayers may claim a refundable income tax credit up to $1,000 per eligible child. Please visit https://otr.cfo.dc.gov/page/early-learning-tax-credit-frequently-asked-questions-faqs to learn more about the the Early Learning Tax Credit (ELTC).
• Franchise Tax Rate: The tax rate for corporations and unincorporated businesses for tax year 2018 is 8.25 percent.
• Small Retailer Property Tax Relief Credit: Certain qualified corporations and unincorporated businesses engaged in making sales at retail may claim a refundable franchise tax credit up to $5,000 based on the amount of real property taxes or rent they pay for a qualified retail location in the District. Please visit https://otr.cfo.dc.gov/page/small-retailer-property-tax-relief-credit-frequently-asked-questions-faqs to learn more about the Small Retailer Property Tax Relief Credit.
• Contact OTR's Customer Service: OTR welcomes questions, comments and suggestions. If you have specific questions about your tax account, please log in to MyTax.DC.gov and send us a web message. You may also contact us as follows:
  • Email: [email protected]
  • Main Customer Service: (202) 727-4TAX (4829); e-Services: (202) 759-1946;
  • Address: 1101 4th Street, SW, Suite 270, Washington, DC 20024
  • Hours of Operation: Monday to Friday, 8:15 am to 5:30 pm, except holidays
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