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Category: Ohio

Ohio Credits From Schedule B

Qualifying Retirement Income Included in OH AGI

To qualify for the Ohio Retirement Income credit, you must meet all of the following:

  1. You received retirement benefits, annuities or distributions that were made from a pension, retirement or profit-sharing plan; and
  2. You received this income because you have retired, and
  3. This income is included in your Ohio AGI

Note: DO NOT INCLUDE Social Security and Railroad Retirement benefits and military retirement income already deducted as a subtraction from income.

Enter the total amount of retirement income – the credit will be figured based on this amount. If you are filing a joint return, combine the total qualifying retirement income for both spouses to determine the credit. The maximum credit per return is $200.

Note: Retirement buy-out amounts, attrition buy-out amounts and other similar amounts reported on IRS form W-2 qualify for this credit only if the amounts are paid under a retirement plan.

Lump Sum Distribution Credit

This credit is available only to individuals 65 or older before January 1, 2014. If you received a lump sum distribution from a pension, retirement or profit-sharing plan, whether on account of retirement or separation from employment, and if you are 65 or older, you may be able to take advantage of a special tax treatment that uses the $50 senior citizen tax credit multiplied by your expected remaining life years.

You can claim the lump sum distribution credit if you can answer "Yes" to ALL the following questions:

  1. Were you 65 or older before January 1, 2014?
  2. Was the lump sum distributed from a qualified employee benefit plan (pension, profit-sharing, stock bonus, Keogh, Internal Revenue Code 401(k), STRS, PERS, SERS, etc)?
  3. Was the distribution made from all of the employer’s qualified plans of one kind in which the employee had funds?
  4. Was the distribution for the full amount credited to the employee?
  5. Was the distribution paid within a single taxable year?
  6. Was the distribution made because the employee died, quit, retired, was laid off or was fired?

Note: If you answered "NO" to any of the questions, you DO NOT qualify for this credit. If you take this credit, you cannot take the $50 Senior Citizen’s credit on this year’s return or on any future year’s return.

NOTE #1: Retirement buyout amounts, attrition buyout amounts and other similar amounts reported on IRS form W-2 do NOT qualify for this credit.

NOTE #2: Distribution from university retirement plans and from government-sponsored deferred compensation plans do NOT qualify for this credit because these plans are not described in Internal Revenue Code section 401 (a).

Lump Sum Retirement Credit

Lump sum distributions that you received on account of retirement from a qualified retirement plan may qualify for the lump sum retirement credit. A lump sum distribution is one where you receive your entire balance from a qualified pension, retirement or profit-sharing plan during one taxable year. If you received income in a lump sum distribution during the current taxable year or are entitled to an unused retirement income exclusion from an earlier year, then you will need special instructions on how to compute your tax credit. For more information, see page 1 of Ohio form LS WKS, which is available on the Ohio website: www.tax.ohio.gov.

NOTE #1: Retirement buyout amounts, attrition buyout amounts and other similar amounts reported on IRS form W-2 do NOT qualify for this credit.

NOTE #2: Distributions from university retirement plans and from government-sponsored deferred compensation plans do NOT qualify for this credit because these plans are not described in Internal Revenue Code section 401(a).

Displaced Worker Training Credit

Ohio law provides a $500 maximum credit per taxpayer for amounts you pay for qualified displaced worker training during the 12-month period after you lose your job. Qualified displaced worker training is any new training or education that improves your chances of getting a new job after you have lost your previous job. Displaced worker training includes apprenticeships, internships and educational classes.

It does not include amounts paid for computer purchases or upgrades, professional organizational fees, meals, mileage, transportation or outplacement firms that help you to develop skills used to find a job.

Such training qualifies for this credit only if you can answer "Yes" to all of the following questions:

  1. Did you lose your job because the place where you worked either permanently closed or moved, or because your employer abolished your job or shift? (Note: Abolishment of job or shift does not include layoffs resulting from seasonal employment, temporary plant closings for retooling, etc.)
  2. During the 12 month period beginning when you lost your job, did you pay for any displaced worker training?
  3. While you were receiving displaced worker training, were you either unemployed or working no more than 20 hours per week?

If you and/or your spouse were able to answer yes to all of the questions above, then you qualify for this credit.

Ohio Political Contributions Credit

You can claim a credit against your tax for contributions of money you made during the year to the campaign committee of candidates for any of the following Ohio offices:

  • Governor
  • Secretary of State
  • Treasurer of State
  • Chief justice of the Ohio Supreme Court
  • Ohio Board of Education
  • Ohio House of Representative
  • Lieutenant governor
  • Auditor of state
  • Attorney general
  • Justice of the Ohio Supreme Court
  • Ohio Senate

The amount of the credit is the lesser of the combined total cash contributions you made during the year or $50 ($100 for married filing joint returns).

Adoption Credit

You can claim a credit against your tax if you adopted a minor child (under 18 years of age) during the taxable year. The amount of the credit is $1500.00 per child adopted. This is a one-time credit per child. Any unused amounts can be carried forward for up to two years. The adoption must be final and recognizable under Ohio Law in the year for which you first claim the credit.