Extracted from PDF file 2023-ohio-individual-tax-instructions.pdf, last modified January 2024Individual Income Tax Instruction Booklet
Tax Year 2023 Instructions for Filing Original and Amended: • Individual Income Tax (IT 1040) • School District Income Tax (SD 100) 2 2023 Ohio IT 1040 / SD 100 Table of Contents H A Amended returns. 8-9 B Business credits. 30-33 Business income Business income deduction. 26-27 Definitions and examples. 11-12 C College savings (529 plans) Instructions. 24 Worksheet. 42 D Deceased taxpayers. 8 Direct deposit options. Back cover Donations. 14-15, 18 E Earned income credit. 29 Electronic filing options. Back cover Estimated tax payments for 2024. 7-8 Exemptions. 16-17 F Filing extensions. 7, 15 Filing requirements. 12-13, 61 G General information. 7-8 Highlights for 2023. 5 I Individual credits. 27-30 Income statements (W-2, 1099). 53-54 Interest. 18, 63 IT 1040 Completing the top portion. 15-16 General information. 12-13 Line instructions. 16-18 Income tax rates and tables. 46-52 J Joint filing credit. 28-29 L Lump sum credits Instructions. 27-28 Worksheets. 43-44 M Mailing addresses. 6 Medical & health care expenses Instructions. 25 Worksheet. 40 Military. 10, 22-24 Modified adjusted gross income. 8 N Net operating loss (IT NOL). 67 Nonresident credit (IT NRC). 32, 34-39 Nonresident statement (IT NRS). 16, 66 P Payment options. 6 R Refund status. 2 Residency. 13 Resident credit (IT RC). 32-33, 39 Residency credits. 32-33 Retirement income credit. 27 S Schedule of Adjustments. 19-25 Schedule of Business Income. 26-27 Schedule of Credits. 27-33 School district numbers. 55-60 SD 100 Completing the top portion. 15 General information. 61-62 Line instructions. 62-64 School district tax rates. 55-60 Senior citizen credit. 27-28, 63 Social Security income. 20 U Use (sales) tax Instructions. 17 Worksheet. 46 These instructions contain law references for specific line items and requirements. To review Ohio income and school district income tax law, see codes.ohio.gov/orc/5747 and codes.ohio.gov/orc/5748, respectively. Check Your Refund Status Anytime, Anywhere! ¬ 24-Hour Hotline - 1-800-282-1784 ¬ Online at tax.ohio.gov/myportal Federal Privacy Act Notice: Because we require you to provide us with a Social Security number, the Federal Privacy Act of 1974 requires us to inform you that providing us with your Social Security number is mandatory. Ohio Revised Code sections 5703.05, 5703.057 and 5747.08 authorize us to request this information. We need your Social Security number in order to administer this tax. 3 2023 Ohio IT 1040 / SD 100 Taxpayer Assistance Need Help? – The Department of Taxation provides the following resources at tax.ohio.gov: Pilot – A new virtual assistant, available 24/7 to answer questions for all tax types. Forms – Find all individual and school district income tax forms (including related schedules and worksheets). Many forms have fill-in versions that you can complete online, print, and then submit to the Department. You can also request tax forms anytime by calling 1-800-282-1782**. FAQs – Review answers to common questions on topics such as business income and residency issues. OH|TAX eServices – File your state and school district income tax returns for free. There are also several self-service options such as: ● Remit payments electronically with or without an OH|TAX eServices account. ● View transcripts, notices, 1099-G and 1099-INT income statements. ● Securely respond to notices or requests for additional information. Information Releases – Research detailed explanations and legal analyses of certain tax topics such as residency and tax issues facing military servicemembers and their civilian spouses. The Finder – Look up your address to determine if you live in a taxing school district as well as the tax rate and four-digit school district number. Ohio Virtual Tax Academy – View webinars presented by Department staff on Ohio's state taxes. Tax Alerts – Sign up to receive tax updates and reminders from the Department via email. Contact Us - If you cannot find the answer using the website, you may contact the Department by: Email – Visit tax.ohio.gov/myportal to contact us by email. Log into OH|TAX and select "Send a Message" under "Additional Services." Write – Contact the Department by mail at: Ohio Department of Taxation P.O. Box 182847 Columbus, OH 43218-2847 Call – You may call to speak with an examiner at 1-800-282-1780** during the Department's normal business hours (8:00 a.m. to 5:00 p.m., Monday through Friday excluding holidays). Visit – The Department's visitor center* is open from 8:00 a.m. to 5:00 p.m., Monday through Friday, excluding holidays: 4485 Northland Ridge Blvd Columbus OH 43229-6596 *Important: All visitors must present a photo I.D. such as a current driver's license, state or military I.D., or passport. **Persons who use text telephones (TTYs) or adaptive telephone equipment only: Contact the Ohio Relay Service at 7-1-1 or 1-800-750-0750 and give the communication assistant the Ohio Department of Taxation phone number that you wish to contact. Additional Resources Volunteer Income Tax Assistance Program (VITA) and Tax Counseling for the Elderly (TCE): These programs help persons with disabilities as well as elderly, low-income, and limited English-speaking taxpayers complete their state and federal returns. For locations in your area, call 1-800-906-9887, or visit their website: http://www.irs.gov/Individuals/Free-Tax-Return-Preparation-for-Qualifying-Taxpayers AARP: Trained and certified AARP tax aide volunteer counselors assist low- to middle-income taxpayers, with special attention to those age 50 and older. For more information, call 1-888-227-7669 or visit their website: http://www.aarp.org/money/taxes/aarp_taxaide/ 4 2023 Ohio IT 1040 / SD 100 Our Mission One team providing education, innovation, outreach, and exceptional service to our customers. Dear Ohio Taxpayers, I’d like to thank you and all Ohioans for taking the time to fulfill the critical responsibility of preparing and filing the Ohio income tax return. It is truly an act that benefits us all. Whether it’s educating our children, protecting our families and neighbors, safeguarding our health and the environment that surrounds us, every Ohioan is impacted in some positive way from the taxes we pay. This tax season, as is often the case, brought changes to the laws and rules that govern Ohio’s income tax filing system. This instruction booklet will address those changes and give you the guidance you need to fill out your 2023 income tax return. I’d like to call attention to a few of the more significant changes: ● Ohio Income Tax Tables. Ohio has reduced the number of tax brackets used to calculate tax on nonbusiness income and reduced two of the three tax rates. ● Housing-Related Credits. New certificate-based credits are available for low-income housing, affordable single-family housing, and the Welcome Home Ohio program. ● Beginning Farmers Credits. New certificate-based credits are available related to “beginning farmers.” ● Ohio Adoption Grant Deduction. A new deduction is available for Ohio adoption grant payments. If you aren’t already filing your tax return electronically, please consider doing so. It’s more accurate and secure and the fastest way to get a refund. New this year, you can file both the Ohio and school district income tax return online for free with our new OH|TAX eServices application. Please keep in mind the deadline for filing both your Ohio and federal tax return is April 15, 2024. And as a reminder, a request for a filing extension does not extend your payment due date. If you have any questions or need assistance with your return, you can contact our Taxpayer Assistance line at 1-800-282-1780, or click on ‘Contact Us’ at tax.ohio.gov. Best wishes, Patricia Harris Ohio Tax Commissioner IMPORTANT: The printed version of these instructions are accurate as of November 27, 2023. The following corrections have been made to the online version: Page 10: Updated instructions regarding the residency and deductions to reflect changes in federal law. Page 23: The line 30 instruction for civilian spouses was updated to reflect changes in federal law. Page 24: The line 34 instruction was updated to note a change in what qualifies for the deduction. Page 27: The line 2 instruction was corrected to state that Table 2 is found on page 43. Page 35: The line 7 instruction was corrected to reference line 8 of the Schedule of Adjustments. Page 64: Corrections were made to the instructions for lines 33 and 34. 5 2023 Ohio IT 1040 / SD 100 Highlights for Tax Year 2023 Ohio Income Tax Tables. Ohio has reduced the number of tax brackets used to calculate tax on nonbusiness income and reduced two of the three tax rates. See pages 46-52. Beginning Farmers Credits. New certificate-based credits are available related to “beginning farmers.” See the instructions on pages 30 and 31. Housing-Related Credits. New certificate-based Ohio Universal Payment Coupon (OUPC). Ohio has credits are available for low-income housing, affordable a new, simplified universal payment coupon for making single-family housing, and the Welcome Home Ohio individual and school district income tax payments. See program. See the instructions on pages 30 and 32. the "Paper Check or Money Order" section on page 6. Redesigned School District Return. Form SD 100 has Ohio Adoption Grant Deduction. A new deduction is been redesigned so that taxpayers who need to file for available for Ohio adoption grant payments. See the more than one school district can do so on a single instructions on page 21. return. See pages 61-65. 529 Plan Deduction. The deduction for contributions Click here for more information on what's changed to a 529 Plan is no longer limited to Ohio plans. See the for tax year 2023! instructions on page 24. Common Filing Tips for Paper Filers Use black ink and UPPERCASE letters. Round all figures to the nearest dollar. Verify your name(s), SSN(s), and address are correct. Include all necessary schedules and worksheets. Verify the forms are for the correct tax year. • Do not change the year on the form. If you do this, processing of your return may be delayed. Do not write on software-generated returns. • Do not make written changes to returns printed from your tax preparation program. Use the program to make the needed changes and reprint the return. • The Department’s system will not pick up handwritten changes on returns generated by tax preparation software. Pay your tax electronically. • You can pay online even when filing by paper. See tax.ohio.gov/pay for more information. When paying by check, always use the Ohio Universal Payment Coupon (OUPC). • When paying Ohio income tax, make sure the OUPC indicates "Individual Income Tax." • When paying school district tax, make sure the OUPC indicates "School District Income Tax." Do not staple, paper clip, or otherwise attach your return together. Ensure your return is placed in the proper order: 1. Ohio IT 1040 (pages 1 and 2) 2. Ohio Schedule of Adjustments 3. Ohio Schedule of Business Income 4. Ohio Schedule of Credits 5. Ohio Schedule of Dependents 6. Ohio Schedule of Withholding 7. Worksheets and attachments 8. Wage and income statements Include verification for withholding and credits. • When claiming withholding, include the proper withholding schedule(s) as well as copies of your wage and income statements. • When claiming certificate-based credits, include copies of the required certificates. • When claiming pass-through entity credits, include the Ohio IT K-1(s). Do not include any banking information with your return. • Direct deposit is not available to paper filers. When filing both Ohio and school district income tax returns, send each return in its own envelope. 6 2023 Ohio IT 1040 / SD 100 Payment Options and Mailing Addresses Generally, Ohio income and school district income tax is due by April 15, 2024. There are several options for paying these taxes. Payments for Ohio and school district income taxes must be made separately. The Department is not authorized to set up payment plans. You may submit partial payments toward any outstanding tax, interest, or penalty. However, such payments will not stop the Department's billing process or collection attempts by the Ohio Attorney General's Office. Debit or Credit Card Electronic Check ACI Payments charges a service fee of 2.65% of your payment or $1, whichever is greater. Ohio does not receive any of this fee. The payment will appear on your credit card statement as two separate entries – one for the payment and another for the service fee. If there is a problem with your payment, call ACI Payments at 1-800-487-4567. Most filers can pay by electronic check via the Department's OH|TAX eServices available at tax.ohio. gov/pay. Note: If you are filing in Ohio for the first time, you may not be eligible to use the Department's OH|TAX eServices to pay your Ohio income taxes. Any filer can pay using a debit or credit card (Discover, Visa, MasterCard, or American Express) at tax.ohio. gov/pay. All debit and credit card payments are processed by ACI Payments, Inc. Paper Check or Money Order Additionally, electronic filers can follow their filing Any filer can pay by check or money order. If you pay software's payment prompts at the time they file. with this method, you must include an Ohio Universal Payment Coupon (OUPC), available at tax.ohio.gov/ An electronic check withdraws funds directly from your forms. If you use a money order, keep a copy for your checking or savings account. There is no fee for using records. You will be charged a $50 fee for writing a bad this payment method. Generally, your payment will check. be withdrawn within 24 hours of the date you choose for payment. You must ensure that the funds are in Ohio IT 1040: Make your check or money order payable your account and available on the date you choose to “Ohio Treasurer of State.” Include the tax year, for payment. The payment will show on your bank "IT 1040," and the last four digits of your SSN on statement as “STATE OF OHIO”. the “Memo” line. Include an OUPC that indicates "Individual Income Tax." You can delay payment until the payment deadline of April 15, 2024. You can also pay your quarterly SD 100: Make your check or money order payable to 2024 Ohio individual and/or school district estimated “School District Income Tax.” Include the tax year, income tax with this method. "SD 100," the last four digits of your SSN, and the school district number on the "Memo" line. Include Important: Future-dated payments can only be an OUPC that indicates "School District Income Tax." If modified through the Department's OH|TAX eServices you are filing for multiple districts on page 3 of the SD at tax.ohio.gov/myportal. 100, use the first school district number from Column A. Where Should I Mail My IT 1040 Return and/or Payments? Ohio Department of Taxation P.O. Box 2679 IT 1040 without payment Columbus, OH 43270-2679 Ohio Department of Taxation IT 1040 with payment P.O. Box 2057 (include OUPC) Columbus, OH 43270-2057 Only the Individual Income Tax OUPC with payment Ohio Department of Taxation P.O. Box 182131 Columbus, OH 43218-2131 Where Should I Mail My SD 100 Return and/or Payments? Ohio Department of Taxation P.O. Box 182197 SD 100 without payment Columbus, OH 43218-2197 SD 100 with payment (include OUPC) Ohio Department of Taxation P.O. Box 182389 Columbus, OH 43218-2389 Only the School District Income Tax OUPC with payment Ohio Department of Taxation P.O. Box 182389 Columbus, OH 43218-2389 7 2023 Ohio IT 1040 / SD 100 General Information for the Ohio IT 1040 and SD 100 When Are My Ohio Returns Due? What Information Must a Preparer Provide? Most taxpayers must file their Ohio IT 1040 and SD 100 (if applicable) by April 15, 2024. You must file your return by this date even if you are unable to pay the tax due. For an exception for certain military servicemembers, see page 10. A tax return preparer must provide his/her printed name and Preparer Tax Identification Number (PTIN) on all returns. The PTIN serves as the preparer's signature. The preparer should not otherwise sign the return. Filing extensions: Ohio does not have an extension request form, but honors the IRS extension. If you filed an IRS extension, your due date for filing your Ohio IT 1040 and SD 100 is October 15, 2024. Include a copy of your IRS extension or IRS acknowledgment, and/or your extension confirmation number. See R.C. 5703.263(C) and 5747.08(F). Can My Tax Preparer Contact the Department About My Tax Return? You may check the box above your tax preparer's name on page 2 of the return to authorize your preparer to: ● Contact the Department about the status of your An extension of time to file does not extend return, payments, or refund; the time for payment of the tax due. You must ● Provide the Department with information missing make extension payments by April 15, 2024 on from your return; AND the appropriate Ohio Universal Payment Coupon ● Respond to inquiries or notices from the Department (OUPC). Interest will accrue on any tax not paid related to the return. by April 15, 2024, and penalties may also apply. You may also complete form TBOR 1, Declaration of Tax See R.C. 5747.08(G) and Ohio Adm. Code 5703-7-05. Representative available at tax.ohio.gov/forms. This form authorizes a tax representative to represent you What Tax Records Do I Need to Keep? in any matter before the Department. Keep a copy of your: See R.C. 5747.08(J). ● Income tax returns and schedules; ● Wage and income statements; Should I Make Estimated Tax Payments for Tax ● Supporting documentation; Year 2024? ● Payment records; for at least four years from the later of the filing due If your income is subject to Ohio withholding, you gendate or the date you filed the return. You must be erally do not need to make estimated payments. You able to support all items listed on your return. See should make estimated payments for tax year 2024 if R.C. 5747.17. your estimated Ohio tax liability (total tax minus total credits) less Ohio withholding is more than $500. How Should I Complete My Income Tax Returns? Estimated payments are made quarterly according to ● Only use black ink. the following schedule: ● Round numbers to the nearest dollar. ● Print numbers and letters (UPPER CASE only) inside 1st quarter - April 15, 2024 the boxes as shown: 2nd quarter - June 17, 2024 3rd quarter - Sept. 16, 2024 12 3 ANY ST R EET 4th quarter - Jan. 15, 2025 When Will I Receive my Refund? Use the appropriate OUPC to make estimated Ohio Most taxpayers who file their returns electronically and income tax and/or school district tax payments. You request direct deposit will receive their refunds in ap- can determine your estimated payments using the proximately 15 business days. Paper returns will take worksheet included with the coupons. Married taxpayers unsure of their filing status for 2024 should make approximately 8 to 10 weeks to process. separate estimated payments based on their individual estimated tax liabilities. Estimated payments will only 8 2023 Ohio IT 1040 / SD 100 be applied to the return associated with the Social Se- ● Joint filing credit. curity number listed on the OUPC. Payments will not Additionally, if you live in an earned income tax base be split between you and your spouse if you combine school district, your taxable income is limited to only your tax liabilities, but file separately. earned income included in your MAGI. Note: Instead of making estimated payments, you can Use the worksheet on page 44 to calculate your MAGI. increase your Ohio withholding by filing a revised Ohio IT 4 with your employer. Also, special rules regarding es- See R.C. 5747.01(II). timated payments apply to certain taxpayers with farming and/or fishing income. See Adm. Code 5703-7-04. What if a Taxpayer Is Deceased? If you do not make the required estimated payments, The taxpayer's representative, such as an executor you may be subject to an interest penalty for underpay- or administrator, must file the deceased taxpayer's return by: ment of estimated taxes. See form IT/SD 2210. ● Checking the "Deceased" box after their SSN; For more information, see the FAQs at tax.ohio.gov/ ● Selecting the filing status from the federal income faq-IncomeEstimated. See also R.C. 5747.09. tax return; AND ● Signing the return on behalf of the deceased. What Is Modified Adjusted Gross Income? If the taxpayer is due a refund, the check will be issued Modified adjusted gross income (MAGI) is your Ohio adin the taxpayer's name. The taxpayer's representative justed gross income (Ohio IT 1040, line 3) plus your busican present proof that she or he is the executor or ness income deduction (Ohio Schedule of Adjustments, administrator to the bank when cashing the check. line 12). If you did not take a business income deduction, your MAGI matches your Ohio adjusted gross income. If the taxpayer's representative needs the check reissued to include his or her name, see the FAQs at tax. You will need to know your MAGI to determine your ohio.gov/faq-IncomeGeneral for instructions. personal exemption amount and if you qualify for any of the following credits: See R.C. 5747.08(A). ● Retirement income credit; What if I Move After Filing My Return? ● Lump sum retirement credit; ● Senior citizen credit; If you move after filing your return, notify the Depart● Lump sum distribution credit; ment of your new address as soon as possible. You ● Child care and dependent care credit; should also notify the post office at moversguide. ● Exemption credit; AND usps.com. Amending Your Ohio IT 1040 and SD 100 You can file an amended Ohio IT 1040 or SD 100 to report changes to your originally filed return(s). An amended return can result in either a tax due or a refund based on the changes. Under certain circumstances, an amended return may be required. When Not to Amend Your Return Some common mistakes may not require an amended return. Some examples include: ● Math errors; ● Missing pages or schedules; To amend the Ohio IT 1040 or SD 100, you should file a ● Demographic errors; new return, reflecting all proposed changes, and indi- ● Missing income statements (W-2, 1099, K-1) or credit cate that it is amended by checking the box at the top of certificates; page 1. You must include the IT RE with your amended ● Unclaimed payments or withholding. IT 1040 and/or the SD RE with your amended SD 100. In these situations, the Department will either make Use your current mailing address on the amended rethe corrections or contact you to request documentaturn. Allow at least 120 days from the date of receipt to tion. process your amended return. For more information, see the FAQs at tax.ohio.gov/faq-Amended. 9 2023 Ohio IT 1040 / SD 100 Requesting a Refund You may amend your return to claim an additional credit, deduction, or payment. Such changes may result in a refund. Generally, you have four years from the date of the payment to request a refund. You must include documentation to support the changes reported on your amended return. Some common required documentation includes: ● Business Income: Page 1 of your federal return, the federal schedules reporting your business income, and IT K-1 forms; ● Social security, disability, survivorship, and retirement benefits: Copies of 1099(s), page 1 of your federal return, and the retirement plan paying the benefits; ● Residency status: Any document supporting your residency change including property records (mortgage statements, lease agreements, etc.), driver's licenses or state IDs, voter registration, resident state tax returns, armed services records and utility bills. ● Payments/credits: Copies of your income statements (W-2, 1099, etc.), Ohio IT K-1, or credit certificates; ● Nonresident credit: Ohio form IT NRC. Transcript reflecting your updated federal return information. If there is a change in your filing status and/or dependents, it must be reflected on your amended Ohio return(s). Additionally, for changes to dependents, complete an updated Ohio Schedule of Dependents. Net Operating Loss: To claim a federal NOL carryback, check both boxes at the top of the return(s) and include a completed Ohio Schedule IT NOL. See the instructions for the Ohio Schedule IT NOL on page 67. Your amended Ohio IT 1040 and/or SD 100 must be filed no later than 90 days after the IRS completes its review of your federal return, even after the four-year period has passed. Failure to file the return within the 90-day period may result in an assessment or a denial of your refund claim. See R.C. 5747.10. Changes to Your Resident Credit You must file an Ohio amended return based on changes made by another state if all of the following are true: ● You claimed a resident credit on your Ohio IT 1040; See R.C. 5747.11. ● You filed income tax returns in other states; ● The Ohio resident credit claimed was based on the Reporting Additional Tax Due taxes due or the taxes paid to the other states; You should amend your return to report additional ● The other states made changes to the returns; AND income or reduce a previously claimed credit or deduc- ● The changes will affect your Ohio resident credit tion. Such changes may result in additional tax due. calculation. Changes to Your Federal Return Your income taxes paid to other states may change after the four-year period has passed. If the taxes paid If the IRS makes changes to your federal return, either would otherwise qualify for the Ohio resident credit, based on an audit or an amended return, and those you have an additional 90 days after the changes have changes affect your Ohio return(s), you are required to been finalized by the state(s) to file an amended return file an amended IT 1040 and/or SD 100. The IRS notifies and request any refund that results from the changes. the Department of these changes. Once the changes are finalized, please include a copy Do not file your amended Ohio return(s) until the IRS of all of the following: has finalized the changes to your federal return. Once ● A revised Ohio form IT RC; they are finalized, include a copy of all of the following: ● The other state return(s) or correction notice(s); AND ● Your federal 1040X; ● Proof of payment to the other state(s). ● The IRS acceptance letter; AND ● The refund check from the IRS, if applicable. See R.C. 5747.05(B)(3). Note: Instead of providing these documents, you may be able to submit a copy of the IRS Tax Account 10 2023 Ohio IT 1040 / SD 100 Ohio Income Tax for Military Servicemembers and Their Civilian Spouses Residency. A military servicemember is a resident of their "state of legal residence." This is generally the same as the servicemember's "home of record" unless it is subsequently changed. The servicemember's state of legal residence does not change based on military orders. Generally, a servicemember's civilian spouse will also retain his/her original state of legal residence. A civilian spouse's residency does not change by reason of being present or absent in a state solely to be with the servicemember as part of military orders. Additionally, a servicemember's nonresident civilian spouse can deduct, on line 30, compensation earned in Ohio, when the spouse is present in Ohio solely due to the servicemember's military orders. See pages 22-24 for specific instructions on each of these deductions. Withholding. A servicemember who qualifies for the deduction on line 29 or a civilian spouse who qualifies for the deduction on line 30 can complete form IT 4 to avoid Ohio withholding on income not subject to tax. Such taxpayers should check the appropriate box Married servicemembers and their spouses can elect in Section III of the IT 4 and provide the form to their to use any of the following as their residence for state employers. income tax purposes: Filing. Certain military servicemembers may not ● The residence or domicile of the servicemember; have a filing requirement due to the deductions avail● The residence or domicile of the spouse; OR able under Ohio law. However, the Department rec● The permanent duty station of the servicemember. ommends that such taxpayers file an Ohio IT 1040 or Deductions. Ohio provides five deductions to mili- IT 10 to avoid delinquency billings. For more informatary servicemembers. Only income included in the tion on who must file an Ohio income tax return, see taxpayer's federal adjusted gross income is eligible page 12. for these deductions. For example, Ohio Veterans Bonus payments are not included in federal adjusted Extensions to File/Pay. Generally, Ohio recognizes gross income and thus are not deductible. The fol- any extensions granted by the IRS. Certain military lowing deductions are in the "Uniformed Services" servicemembers will have the same extensions to file their Ohio returns and pay any Ohio tax due. These section of the Ohio Schedule of Adjustments: servicemembers do not owe interest, penalties, or ● Line 29 - Deduction for military pay and allowances the interest penalty in connection with this extension for certain active duty servicemembers stationed period. See R.C. 5747.026 for more information. outside Ohio ● Line 30 - Deduction for military pay earned by a non- Taxability. The charts on page 42 summarize the taxability of income for military servicemembers and resident servicemember ● Line 31 - Deduction for uniformed services retire- their civilian spouses. ment income School District Income Tax. Military servicemem● Line 32 - Deduction for military injury relief fund bers and their civilian spouses may be liable for grants and veteran's disability severance payments school district income tax if they are Ohio residents, ● Line 33 - Deduction for certain reimbursements and even if they are not present in Ohio due to military orbenefits received for service in the Ohio National ders. To determine if you are liable for school district Guard income tax, see page 61. For more information, see tax.ohio.gov/military, or Information Release IT 2008-02, "Ohio Taxable Income and Deductions for Servicemembers and Civilian Spouses." You can also email the Department at military-info@ tax.ohio.gov. 2023 Ohio IT 1040 / SD 100 11 Ohio Definitions and Examples of Business and Nonbusiness Income How Is Business Income Treated on My Return? Sale of an equity or ownership interest in a business means the sale was treated as an asset sale for federal Taxpayers can deduct the first $250,000 ($125,000 income tax purposes and/or the seller materially for married separate filers) of their business income participated, as described in 26 C.F.R. 1.469-5T, in included in their federal adjusted gross income. Also, the activities of the business during the taxable year any business income not deducted is taxed at a flat 3%. in which the sale occurs or during any of the five See the instructions for the Ohio Schedule of Business preceding taxable years. Income on pages 26-27. Generally, income recognized by a sole proprietorship Additionally, Ohio-related business income earned by or pass-through entity is business income. However, nonresidents is taxable to Ohio. See the instructions determining if income is business income is highly for the IT NRC on pages 34-39. dependent upon the specific facts and circumstances. How Does Ohio Law Define Business and NonbusiWhat Are Some Examples of Business Income vs. ness Income? Nonbusiness Income? "Business income" is income, including gain/loss, Interest and Dividends: John reports $1,500 of arising from any of the following: interest and dividend income on federal Schedule ● Transactions, activities, and sources in the regular B. $200 of his interest income is from a pass-through course of a trade or business operation; entity that primarily operates an investment business. ● Real, tangible, and intangible property if the ac- The remaining $1,300 is from personal, nonbusiness quisition, rental, management, and disposition of sources. Thus, only $200 of John’s interest is business the property constitute integral parts of the regular income. course of a trade or business operation; ● A partial or complete liquidation of a business, in- Capital Gains and Losses: Andrew recognizes a capital cluding gain or loss from the sale or other disposition gain from the sale of a tractor used to harvest wheat on his farm. Since the tractor was integral to his farming of goodwill; ● Income from certain sales of equity or ownership business, the capital gain is business income. interests in a business; OR Capital Gains and Losses: Paul reports $8,000 of ● Compensation and guaranteed payments paid by a capital gain income on his federal Schedule D. $2,000 pass-through entity, or a professional employer orof the capital gains are from a pass-through entity ganization on its behalf, to an investor who directly that primarily operates an investment business. The or indirectly owns 20% or more of the entity. remaining $6,000 is from personal, nonbusiness "Nonbusiness income" is any income other than sources. Thus, only $2,000 of Paul’s capital gains are business income. business income. Rental Income and Losses: Debbie owns a rental property. She actively advertises, manages, and How Do I Determine What Income Is Business maintains the property. Debbie is in the trade or Income? business of property rental. Therefore, her rental Business income can be determined by using either test: income is business income. See R.C. 5747.01(B), 5747.01(C) and 5733.40(A)(7). Rental Income and Losses: Ryan occupies a home on a golf course. The golf course hosts a two-week tournament every year. Ryan annually takes a Functional Test: Looks to if the property was integral vacation to Florida and rents out his home during the to the trade or business, or if it generated business tournament. While the rental might be considered income in the past. regular, Ryan is not in the trade or business of property rental. Therefore, his rental income is not business See Kemppel v. Zaino, 2001-Ohio-92. income. Transactional Test: Looks to the nature, frequency and regularity of the transaction. 12 2023 Ohio IT 1040 Royalty Income: Hannah works full-time from her home writing children’s books. Hannah has an agreement with a publisher that pays her a royalty for each copy of her book that is sold. Hannah is in the trade or business of writing books. Therefore, her royalty income is business income. payment on federal Schedule E. Because he owns at least 20% of the entity, the guaranteed payment is business income. Wages/Compensation: Jim owns 80% of an S corporation. Jim receives $200,000 of wages from the S corporation, which are reported on a W-2. Because he owns at least 20% of the corporation, the wages are reclassified as business income. Mineral Rights Income: Cynthia allows a company to extract minerals from her residential property. She receives income based on the company's usage of her land. Since Cynthia is not engaged in a related trade or Trust Income: Brett sets up a trust, with himself as the beneficiary, that invests in multiple pass-through business, it is not business income. entities. Operating income from these entities is Pass-Through Income: Ellen owns 15% of a pass- distributed to the trust, which further distributes the through entity. She reports $50,000 of ordinary income to Brett. Since the income was business income income, $10,000 of bonus depreciation, and $60,000 to the entities, it retains its character as business of guaranteed payments on federal Schedule E. Since income as it passes through to the trust and to Brett. Ellen owns less than 20% of the entity, the guaranteed payments are nonbusiness income. Thus, her net Trust Income: David sets up a trust, with himself as the business income from federal Schedule E is $40,000 beneficiary, to hold his personal investments. Although David uses a trust, the usage of a trust does not create (her ordinary income less bonus depreciation). a trade or business. Therefore, the investment income Guaranteed Payments: Stan owns 25% of a pass- is nonbusiness income to both the trust and to David. through entity. He reports a $60,000 guaranteed General Information for the Ohio IT 1040 Who Must File an Ohio Income Tax Return? You do not have to file an Ohio income tax return if: ● Your Ohio adjusted gross income (Ohio IT 1040, line 3) is less than or equal to $0; ● The total of your senior citizen credit, lump sum distribution credit, and joint filing credit (Ohio Schedule of Credits, lines 4, 5 and 12) is equal to or exceeds your income tax liability (Ohio IT 1040, line 8c) and you are not liable for school district income tax; OR ● Your exemption amount (Ohio IT 1040, line 4) is the same as or more than your Ohio adjusted gross income (Ohio IT 1040, line 3). Every Ohio resident and every part-year resident is subject to the Ohio income tax. Every nonresident having Ohio-sourced income must also file. Examples of Ohio-sourced income include the following: ● Wages or other compensation earned in Ohio (see "Exception" below); ● Ohio lottery, casino, and/or sports gaming winnings; ● Income or gain from Ohio property; ● Income or gain from a sole proprietorship doing business in Ohio; ● Income or gain from a pass-through entity doing However, even if you meet one of these exceptions, if business in Ohio. you have a school district income tax liability (SD 100, line 26 or 38), you are required to file the Ohio IT 1040. Exception: A full-year nonresident living in Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia Note: If your federal adjusted gross income is does not have to file if the nonresident's only Ohio- greater than $28,450, the Department recommends sourced income is wages. that you file an Ohio IT 1040 or IT 10, even if you do not owe any tax, to avoid delinquency billings. Example: Charley lives in Kentucky but commutes to Cincinnati every day to her job. Charley's wages are Ohio IT 10: Certain taxpayers can file Ohio form IT 10 not taxable in Ohio even though they are earned here. instead of the Ohio IT 1040. The four types of taxpayers described on form IT 10 are eligible to file the form if: 13 2023 Ohio IT 1040 ● They do not have an Ohio individual income or school district income tax liability; AND ● They are not requesting a refund. Do not file the IT 10 if you file the IT 1040. See R.C. 5747.08. Ohio Residency For more information, see tax.ohio.gov/residency, or Information Release IT 2018-01, "Residency Guidelines - Tax Imposed on Resident and Nonresident Individuals for Taxable Years 2018 and Forward." See also R.C. 5747.01(I)(1) and Cunningham v. Testa, 2015Ohio-2744. How Do I Show I Am a Nonresident of Ohio? Any individual can challenge the presumption of Ohio residency by providing documentation showing that Resident: You are an Ohio resident for income tax they are a nonresident. Ohio uses a contact period test purposes if you are domiciled in Ohio. Thus, under to determine the burden of proof needed to show that Ohio law, the terms “domiciled” and “resident” mean an individual is a nonresident. the same thing. If you had fewer than 213 contact periods in Ohio during Generally, any individual with an abode in Ohio is the tax year, you must provide enough documentation presumed to be a resident. The abode can be either to show that it is more likely than not that you were a owned or rented. Temporary absence from your nonresident. If you had 213 or more contact periods, Ohio abode, no matter how long, does not change you must provide clear and convincing documentation your residency status. Thus, if you live in Ohio, the that you were a nonresident. presumption is that you are an Ohio resident. Alternatively, certain individuals can change the Example: Brent travels to Florida each winter and presumption of Ohio residency to a presumption of returns to Ohio each spring. However, he maintains nonresidency by filing the Ohio Nonresident Statement his Ohio driver's license, voter registration, etc. and (form IT NRS). For more information on this statement, has not established permanent residence in Florida. see pages 16 and 66. Therefore, he is a full-year resident of Ohio. See R.C. 5747.24(B), (C), and (D). Part-year resident: You are a part-year resident of Ohio if you were a resident of Ohio for a portion of the What Is a Contact Period? tax year and a nonresident for the rest of the tax year. You have a contact period in Ohio if all of the following Thus, you are a part-year resident if you permanently are true: moved into or out of Ohio during the tax year. ● You have an abode outside of Ohio; What Is my Ohio Residency Status? Part-year residents are entitled to the nonresident credit for any income earned while they were a resident of another state. They are also eligible for the resident credit on non-Ohio income earned while they were an Ohio resident if they were subject to, and paid tax on, that income in another state. ● You are away overnight from your abode; AND ● While away, you spend any portion of two consecutive days in Ohio. You do not have to spend the night in Ohio. For example, if you spend portions of Monday and Tuesday in Ohio, but stay in a hotel in Kentucky on Monday Nonresident: You are a nonresident if you were night, you would still have a contact period in Ohio. a resident of another state for the entire tax year. You must spend consecutive days in Ohio to have a Nonresidents who earn or receive income within Ohio contact period. For example, if you spend portions of will be able to claim the nonresident credit with respect Monday and Wednesday in Ohio, but not Tuesday, then to all items of income not earned and not received in you would not have a contact period in Ohio. Ohio. See R.C. 5747.24(A). If you are currently a member of the military and you have questions about residency status, see page 10. 14 2023 Ohio IT 1040 Donations that Apply to the Ohio IT 1040 A donation will reduce the amount of the refund that you are due. If you decide to donate, this decision is final. You cannot change your mind and later ask for your donations to be refunded. If you do not want to donate, do not enter an amount on Ohio IT 1040, lines 26a-g. See R.C. 5747.113. Because your tax return is confidential, the Department cannot release your name to the fund administrators, but the administrators extend appreciation to those who donate. Your donation may be tax-deductible on a future federal income tax return. Breast and Cervical Cancer Project Ohio History Fund Contributions made to the project are used to provide free breast and cervical cancer screening, diagnostic and outreach/case management services to uninsured and underinsured Ohio women. The project is administered by the Ohio Department of Health and is operated through 11 regional agencies, which enroll women in the program and schedule them for services with clinical providers in the agency's service area. The Ohio History Fund is a 501(c)(3) nonprofit organization that allocates these funds toward a matching grants program to support state and local historyrelated projects throughout Ohio. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide grants to promote and protect Ohio's rich history, you may do so by writing a check payable to "The Ohio History ConnecIf you do not have an overpayment on your Ohio IT tion Income Tax Contribution Fund" and mailing it to: 1040, but you want to donate to provide grants for free The Ohio History Connection breast and cervical cancer screening, you may do so by Attn: Business Office writing a check payable to "Ohio Treasurer of State" or 800 E. 17th Avenue "Ohio Department of Health" and mailing it to: Columbus, OH 43211-2474 Ohio Department of Health Go to www.ohiohistory.org to donate online. Attn: Breast & Cervical Cancer P.O. Box 15278 State Nature Preserves and Scenic Rivers Columbus, Ohio 43215-0278 Contributions are used to protect Ohio's state nature In the description on the check, please write "Breast preserves, scenic rivers, rare species and unique and Cervical Cancer Donation." habitats. Your donations play a critical role in caring for Ohio's most exceptional forests, wetlands, prairies, Military Injury Relief Fund rivers and streams. Donations fund educational The Military Injury Relief Fund provides grants to in- outreach programs, research and monitoring for rare dividuals injured while in active service as a member species and construction of facilities that improve of the U.S. armed forces and to individuals diagnosed public access. with post-traumatic stress disorder while serving, or after having served, in Operation Iraqi Freedom, Op- If you do not have an overpayment on your Ohio IT 1040, direct donations may also be made by check or eration New Dawn or Operation Enduring Freedom. online. Please visit the "Support Natural Areas" section If you do not have an overpayment on your Ohio IT at naturepreserves.ohiodnr.gov for information. 1040, but you want to donate to provide grants to such Wildlife Species and Endangered Wildlife individuals, you may do so by writing a check payable to "Ohio Treasurer of State (ODVS)" and mailing it to: The Division of Wildlife uses these funds to establish habitat and protect open spaces for wildlife. Past Ohio Department of Veterans Services donations have helped to restore populations of Military Injury Relief Fund endangered species. Your generous donation will P.O. Box 373 continue to help support Ohio's native wildlife – a Sandusky, OH 44871 natural treasure! 2023 Ohio IT 1040 / SD 100 / IT 10 If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide grants to protect Ohio's natural heritage, you may do so by writing a check payable to the "Nongame and Endangered Wildlife Special Account" and mailing it to: Ohio Department of Natural Resources Division of Wildlife 2045 Morse Road, Building G-1 Columbus, OH 43229-6693 To learn more, go to wildlife.ohiodnr.gov. Wishes for Sick Children Contributions are distributed by the Ohio Department of Health to fund a program administered by a nonprof- 15 it corporation that grants the wishes of individuals who are under the age of 18, Ohio residents, and have been diagnosed with a life-threatening medical condition. If you do not have an overpayment on your Ohio IT 1040, but you want to donate to provide funds for Wishes for Sick Children, you may do so by writing a check payable to "Ohio Treasurer of State" or "Ohio Department of Health" and mailing it to: Ohio Department of Health Attn: Wishes for Sick Children P.O. Box 15278 Columbus, OH 43215-0278 Completing the Top Portion of Your Ohio Returns IT 1040, SD 100 and IT 10 Filing Status Your filing status must be the same as your federal income tax filing status for the tax year. See R.C. Check this box if you are amending your previously filed 5747.08(E). return. Include the Ohio IT RE and/or SD RE with your amended return. See pages 8-9 for amended return If you check “married filing separately,” enter your spouse’s SSN in the spaces provided. instructions. This box is not available on form IT 10. Amended Return Check Box If you and your spouse filed a joint federal return, you must file a joint Ohio income tax return even if Check this box if you are amending due to a net op- one or both of you are nonresidents of Ohio. You may erating loss carryback. You must include the Ohio claim the nonresident credit (see the Ohio Schedule Schedule IT NOL with your amended return. This box of Credits) for income not earned or received in Ohio. is not available on form IT 10. If you and your spouse filed separate federal returns, you must file separate Ohio returns. Name(s), Address and SSN(s) Net Operating Loss (NOL) Check Box Enter your name and current address on page 1 and your SSN on pages 1 and 2 of your return (if filing jointly, also enter your spouse’s name and SSN on page 1). Do not include your spouse’s name and SSN if you are not filing jointly. Extension Filer County School District Number If you were an Ohio resident for any part of the tax year, enter the first four letters of the county in which you lived during the majority of the tax year. Full-year nonresidents should leave these boxes blank. If you were an Ohio resident for any part of the tax year, enter the number of the school district in which you lived during the majority of the year. Full-year nonresidents should enter 9999. Any taxpayer with a valid federal extension is allowed an extension of time to file their Ohio returns. Such taxpayers should check the box indicating they are a federal extension filer for this tax year to qualify for the Note: If you and/or your spouse have an Individual Ohio extension. For more information on filing extenTaxpayer Identification Number (ITIN), enter the ITIN sions, see page 7. IT 1040 and IT 10 in the spaces provided on the return as the SSN. 16 2023 Ohio IT 1040 / IT 10 See pages 55-60 for a full list of Ohio’s school districts Ohio Nonresident Statement or use The Finder at tax.ohio.gov/Finder. Nonresidents who meet certain required criteria and Note: Some school districts levy an income tax on their wish to establish an irrebuttable presumption of nonresidents. See pages 61-62 for more information. Ohio residency for the tax year may check these boxes instead of filing form IT NRS. The five required criteria Residency Status are listed on page 66 under, “What Criteria are Required to File the Ohio Nonresident Statement?” Check the box corresponding to your residency status. If your filing status is married filing jointly, each spouse Nonresidents who file jointly and both meet the remust indicate his/her residency status. quired criteria can each check the box to establish an irrebuttable presumption of non-Ohio residency. If you checked the box for "part-year resident" or “nonresident,” write, in the space provided, the two-letter Note: Individuals who do not meet the required criteria abbreviation of the state (other than Ohio) where you are still able to file as nonresidents. Residents and partresided for the majority of the tax year. year residents cannot check these boxes to establish an irrebuttable presumption of non-Ohio residency. For more information on Ohio residency, see page 13. Ohio IT 1040 - Individual Income Tax Return Line 1 – Federal Adjusted Gross Income You must include a copy of the Ohio Schedule of Adjustments with your return. Enter the amount from line 11 of your 2023 federal 1040, 1040-SR, or 1040-NR. Line 1 of your Ohio income Line 2b – Ohio Schedule of Adjustments tax return must match your federal adjusted gross (Deductions) income as defined in the Internal Revenue Code. The Ohio Schedule of Adjustments lists the deducZero or Negative Federal Adjusted Gross Income. tions from your federal adjusted gross income. For If you have a zero or negative federal adjusted gross more information about the deductions you must income, you must include a copy of page 1 of your make, see pages 20-25. federal return. ● If you have no deductions to your Ohio income, leave line 2b blank. A foreign trust that files federal form 1040-NR should ● Any deductions listed on this line must be supported not use the IT 1040 to file with Ohio. Such trusts must by the applicable Schedule of Adjustments line file form IT 1041. item(s). Enter the amount from Schedule of Adjustments, line 44 on this line. See R.C. 5747.01(A). Line 2a – Ohio Schedule of Adjustments (Additions) You must include a copy of the Ohio Schedule of Adjustments with your return. The Ohio Schedule of Adjustments lists the additions to your federal adjusted gross income. For more information about the additions you must make, see pages 19-20. ● If you have no additions to your Ohio income, leave line 2a blank. ● Any additions listed on this line must be supported by the applicable Schedule of Adjustments line item(s). Enter the amount from Schedule of Adjustments, line 11 on this line. Line 4 – Personal and Dependent Exemptions Ohio allows an exemption for the following: ● You, if not claimed as a dependent on another person’s return; ● Your spouse, if filing jointly and not claimed as a dependent on another person’s return; AND ● Your dependents claimed on your federal tax return. 17 2023 Ohio IT 1040 The personal and dependent exemption is based on Line 11 – Interest Penalty your modified adjusted gross income (see page 8): Generally, if you are a wage earner and have Ohio Personal/ withholding, you will not owe an interest penalty. If Dependent Modified Adjusted you have non-wage income or no Ohio withholding, Exemption Gross Income use Ohio IT/SD 2210 to determine if an interest $2,400 $40,000 or less penalty is due. For more information, see the FAQs at $2,150 $40,001 – $80,000 tax.ohio.gov/faq-IncomeEstimated. See also R.C. 5747.09(D) and (E). $1,900 More than $80,000 Enter your number of exemptions in the spaces pro- Line 12 – Unpaid Use (Sales) Tax vided. Multiply your exemptions by the appropriate Report the amount of unpaid use (sales) tax due amount from above and enter the result on line 4. for the tax year. You owe Ohio use tax if both of the Example: John and Mary claim their son Patrick as following are true: an exemption on their jointly filed federal income ● You made purchases where sales tax was not collected; AND tax return. Their modified adjusted gross income is ● The purchases were not qualifying purchases $75,000. Thus, they claim three exemptions totaling made during Ohio's sales tax holiday. $6,450 on their Ohio return. Patrick files his own tax return. Since Patrick is a dependent and his parents Use tax eliminates the disadvantage to Ohio reclaim an exemption for him, he is not eligible for an tailers when Ohio shoppers buy from out-of-state exemption on his return. He should check the box sellers who do not collect sales tax. Use tax is most indicating he can be claimed by someone else and commonly due on out-of-state purchases such as enter $0 on line 4. those made from the internet, television, or cataOhio Schedule of Dependents. If you included dependents on your Ohio return, complete the Ohio Schedule of Dependents. If your dependent has an individual tax identification number (ITIN) or adoption taxpayer identification number (ATIN), enter that number in the boxes for the dependent's SSN. If the dependent information is not provided, incomplete, or contains errors, you may be asked for supporting documentation. See R.C. 5747.025 and 5747.01(O). logs. Use the worksheet on page 46 to calculate your use tax. For more information, see the "Sales and Use Tax" topics at tax.ohio.gov/FAQ. See also R.C. 5747.083. Line 14 – Ohio Income Tax Withheld Enter your Ohio income tax withheld as reported on Part A, line 1 of the Schedule of Ohio Withholding. Schedule of Ohio Withholding. Complete this schedule if you are reporting an amount on line 14 of the IT Line 8a – Tax on Line 7a 1040. Enter only income statements (W-2, W-2G, 1099) Calculate your tax on your Ohio income tax base less reporting Ohio income tax withheld. Do not include: business income. ● Taxes withheld for another state, a city, or a school ● All taxpayers can utilize the Income Tax Brackets district; OR found on page 46. ● Taxes paid by a pass-through entity and reported ● If your nonbusiness taxable income is less than to you on an Ohio IT K-1 (report these amounts on $115,300, your tax has been calculated for you in Ohio Schedule of Credits, line 41). the Income Tax Table found on pages 47-52. See the sample statements on pages 53-54. Do not list Note: The tax amount listed in the Income Tax Table income statements that do not report Ohio income may be slightly lower or higher than the tax amount tax withheld. computed by using the Income Tax Brackets. See R.C. 5747.02(A)(3). 18 Place the state copies of your income statements after the last page of your return. Do not include income statements that are handwritten, self-created, or generated by your tax preparation software. See R.C. 5747.08(H). Line 15 – Payments and Credit Carryforward Amounts Enter the following amounts: ● Estimated and extension payments; AND ● Any credit carryforward amount from your prior year Ohio IT 1040. Do not include: ● A prior year's refund that you requested but did not receive. Contact the Department about the status of any such refund. ● Taxes paid by a pass-through entity and reported to you on an Ohio IT K-1 (report these amounts on Ohio Schedule of Credits, line 41). See R.C. 5747.09(B). 2023 Ohio IT 1040 Line 23 – Total Amount Due This amount must be paid by April 15, 2024. Do not mail cash. Instead, make payment by: ● Electronic check; ● Credit or debit card; OR ● Paper check or money order. Make your check or money order payable to "Ohio Treasurer of State" and include an Ohio Universal Payment Coupon (OUPC). Include the tax year and the last four digits of your SSN on the “Memo” line. For more information regarding payment options, see page 6. Line 25 - Credit Carryforward Enter the portion of your refund you want applied to tax year 2024. This is only allowed on timely filed, original returns; it is not allowed on amended returns. Line 26 – Donations You may donate all or a portion of the amount on line 24 to one or more of the organizations listed. Such Line 17 – Amount Previously Paid (Amended donations will reduce your refund, and are only alReturns Only) lowed on timely filed, original returns; they are not When filing an amended return, enter the amount allowed on amended returns. previously paid with your previously filed return(s) If you decide to donate, this decision is final. For more excluding the amount reported on line 15. information on the donation options, see pages 14-15. Line 19 – Overpayment Previously Requested See also R.C. 5747.113. (Amended Returns Only) Line 27 – Your Refund When filing an amended return, enter the amount you reported on line 24 on your previously filed return(s). If you do not request direct deposit, or you filed by paper, your refund will be mailed to the address on Line 22 – Interest Due the tax return. Interest is due from the unextended due date until the Note: Your refund may be offset pursuant to R.C. date the tax is paid. Generally, you do not owe interest 5747.12. You will be notified if your refund is subject if you are due a refund. An extension of time to file does to offset. not extend the payment due date. The interest rate for calendar year 2024 is 8%. If you move after filing your tax return, your refund may be delayed. Notify the Department of your address Certain military servicemembers may not be subject change as soon as possible. to interest. See page 10 for more information. See R.C. 5747.08(G). 19 2023 Ohio Schedule of Adjustments Ohio Schedule of Adjustments Additions Line 1 – Non-Ohio State or Local Government Interest and Dividends ● The amount was deducted as a 529 plan contribution or tuition credit purchase on the Ohio Schedule of Adjustments in any prior tax year. For tax years 2022 and prior, the deduction was only Enter interest and/or dividends paid on obligations or available for contributions made to an Ohio 529 (Colsecurities from a non-Ohio state, city, county, or other legeAdvantage) savings plan. For tax year 2023, only local government. enter amounts on this line for distributions from an Ohio 529 plan. Do not include: ● Any amounts already included in federal adjusted gross income; ● Amounts paid on obligations or securities from Ohio, or an Ohio city, county, school district, or other local government; OR ● Amounts paid on obligations or securities from a U.S. territory or the federal government. See R.C. 5747.01(A)(9) and 5747.70. See R.C. 5747.01(A)(1). Line 6 – Medical Savings Account Line 2 – Pass-Through Entity Add-Back Line 5 – Ohio Public Obligations Enter any loss resulting from the sale/disposition of Ohio public obligations to the extent that such losses have been deducted in determining federal adjusted gross income. See R.C. 5747.01(A)(8). Enter amounts from a medical savings account Enter Ohio pass-through entity tax (from the IT 1140 withdrawn for nonmedical purposes only if the and/or IT 4738) to the extent it was not included in your amount was deducted on the Ohio Schedule of federal adjusted gross income. The tax may be reported Adjustments in any tax year. Use the worksheet to you on an Ohio IT K-1 or provided with the federal on page 41 to calculate this adjustment. See R.C. 5747.01(A)(14). K-1. See R.C. 5747.01(A)(15) and (36). Line 3 - Non-Ohio Tax Related to IRS Notice 2020-75 Line 7 – Reimbursement of Expenses Enter your proportionate share of taxes paid by a pass-through entity to another state or the District of Columbia if both of the following are true: ● The tax was enacted for purposes of complying with IRS notice 2020-75; AND ● The tax was deducted in computing your federal or Ohio adjusted gross income. Enter reimbursements received in 2023 for any expenses that you deducted on a previously filed Ohio income tax return if the amount of the reimbursement was not included in federal adjusted gross income for 2023. See R.C. 5747.01(A)(11)(b). Line 8 – Accelerated Depreciation Add 5/6 of your bonus depreciation allowed under Internal Revenue Code section 168(k). Also add 5/6 of your depreciation expense allowed under InterLine 4 – College Tuition Expenses nal Revenue Code section 179 less the amount that Enter any amount reported to you on a 1099-Q repre- would have been allowed under section 179 as it exsenting distributions from a 529 savings plan that meet isted on Dec. 31, 2002. all of the following: Replace “5/6” with “2/3” for employers who increased ● The amount is not otherwise included in your federal their Ohio income taxes withheld by an amount equal adjusted gross income; to or greater than 10% over the previous year. Re● The amount was not used to pay for qualified higher- place “5/6” with “6/6” for taxpayers who incur a net education expenses and was not distributed due operating loss for federal income tax purposes if the to the beneficiary's death, disability, or receipt of a loss was a result of the 168(k) and/or 179 depreciascholarship; AND tion expenses. See R.C. 5747.01(A)(41). 20 No add-back is required for: ● Employers who increased their Ohio income taxes withheld over the previous year by at least their total 168(k) and 179 depreciation expenses; ● 168(k) or 179 depreciation from a pass-through entity in which the taxpayer owns less than 5%. 2023 Ohio Schedule of Adjustments Line 14 – State or Municipal Income Tax Overpayments Enter the amount from your 2023 federal income tax return, Schedule 1, line 1. See R.C. 5747.01(A)(11)(a). Line 15 - Taxable Social Security Benefits This add-back is deductible on the Ohio Schedule of Deduct the amount on your federal 1040 or 1040-SR, Adjustments in future tax years. Use the worksheet on line 6b. Do not enter any non-taxable portion of your page 41 to assist you in calculating your future years' Social Security benefits. See R.C. 5747.01(A)(5). deductions. Line 16 - Certain Railroad Benefits For more information, see the FAQs at tax.ohio.gov/faqDeduct railroad benefits, to the extent they are exempt IncomeDepreciation. See also R.C. 5747.01(A)(17). from state taxation and included in your f
Individual Tax Instructions
Use this instructional booklet to help you fill out and file your individual income taxes for Ohio. This booklet contains instructions for Ohio personal and school district income taxes. Follow the index tabbing as you see at the left of this page for the proper location of the instructions throughout the book.
We last updated the Individual Income Tax Instruction Booklet in January 2024, so this is the latest version of Individual Tax Instructions , fully updated for tax year 2023. You can download or print current or past-year PDFs of Individual Tax Instructions directly from TaxFormFinder. You can print other Ohio tax forms here.
TaxFormFinder has an additional 82 Ohio income tax forms that you may need, plus all federal income tax forms.
| Form Code | Form Name |
|---|---|
| Form IT 1040ES | Income Tax Estimated Payment Vouchers and Instructions Estimated |
| Individual Tax Instructions | Individual Income Tax Instruction Booklet |
| Income Tax Instructions | Income Tax Instruction Booklet Tax Return |
| Form IT 1040 | Ohio Individual Income Tax Return Bundle Tax Return |
| Form IT SD 100 | School District Income Tax Return Tax Return |
View all 83 Ohio Income Tax Forms
Ohio usually releases forms for the current tax year between January and April. We last updated Ohio Individual Tax Instructions from the Department of Taxation in January 2024.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
We have a total of nine past-year versions of Individual Tax Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
