Below is a list of income that Ohio will allow you to subtract on your return:
Interest And Dividends Adjustment
Enter interest and dividend income received from U.S. obligations that are exempt from Ohio tax by federal law.
You can deduct disability benefits if they are included in your federal adjusted gross income.
This subtraction allows you to deduct survivor benefits included in federal adjusted gross income. Most life insurance benefits are not included in Federal AGI and cannot be deducted.
Interest Or Gain From Sales Of OH Public Obligations
You may deduct interest income earned from Ohio public obligations and Ohio purchase obligations as long as the income was included in your federal AGI. You may also deduct gains from the sale of Ohio public obligations as long as the gain was included in your federal AGI. Also, deduct income from providing public services if the income was included in your federal AGI.
Contributions To College Advantage 529 Savings
Ohio taxpayers that contribute to a College Advantage 529 Savings Account can subtract up to $4,000 per beneficiary.
Contributions To Ohio Medical Savings Account
Ohio taxpayers that contribute to a Medical Savings Account can subtract up to $5,215 ($10,430 if MFJ).
Military pay for Ohio residents received while the military member was stationed outside Ohio
Ohio allows active duty military members that are residents of Ohio, to deduct their military pay earned while stationed OUTSIDE of Ohio. You cannot deduct any other types of income such as civilian or spouse wages, interest, dividends and capital gains.
Employee Compensation earned in OH by residents of neighboring States
If you obtained residence in Kentucky, Indiana, Michigan, West Virginia or Pennsylvania, enter your compensation earned from Ohio sources. You do are not required to file an Ohio return if you were a full year resident of those states AND your only source of income earned while in Ohio was from wages, salaries, tips, and other employee compensation.
Uniformed Services Retirement Income
If you retired from the Uniformed Services such as the Army, Air Force, etc. You can deduct your military retirement income that is not deducted or excluded in computing your Ohio or federal AGI.
Qualified Organ Donor Expenses And Contributions (up to $10,000)
You may deduct up to $10,000 of qualified organ donation cost incurred during the taxable year. If you are filing as married filing jointly, you may deduct up to $10,000 for you and your spouse that you each incurred for organ donation expenses. This deduction is only able to be claimed one time only for all taxable years. If you claim this deduction for this year, you can’t claim it in a subsequent year.
Federal Targeted Jobs Tax Credit Adjustment (Wage Expense)
Deduct the amount of employer wages and salary expenses that were not deducted for federal income tax purposes because you claimed the federal work opportunity tax credit.
Refunds Of Prior Year Federal Itemized Deductions
You may deduct refunds or reimbursements of expenses you originally deducted on a prior federal return if the refund was included in your federal AGI and the expense that you were refunded was deducted as an itemized deductions on Schedule A of a prior federal return.
Repayment Of Income Reported In A Prior Year
Enter the amount of repayment of income paid in a subsequent year IF for federal purposes, you claimed either an itemized deduction for the amount repaid OR a tax credit on your federal return that was based on the amount repaid; you do not deduct this amount on any other line if your Ohio returns; in the year you received the income, it did not qualify for the resident or nonresident credits on your Ohio return.
Depreciation Expense Adjustment
You may deduct 1/5, 1/2, or 1/6 of the Depreciation Expense Adjustment for IRC Section 168(k). The fraction used depends on the one used to figure when the add-back took place.
Pell Ohio College Opportunity Taxable Grant Amounts Used To Pay Room And Board
You may deduct the federally taxable portion of a Pell Grant or Ohio College Opportunity Grant that was used to pay room and board.
National Guard Reimbursements And Benefits
You may deduct reimbursement from group life insurance premiums and payment of death benefits ONLY IF these amounts are included in your federal AGI.
Contributions To An Individual Development Account
You may deduct matching contributions that were made to any Individual Development Account after the account is established by a county department of human resources.
Certain Income Earned By Military Nonresidents And Civilian Nonresident Spouses
“The Servicemembers Civil Relief Act of 2003, as amended in 2009, is a federal law that provides that a state cannot consider a servicemember or his/her spouse to be a resident simply because he/she is present in the state due to military orders of the servicemember.” The wage and salary income of the nonresident spouse of a service member is exempt from Ohio tax.
Military Injury Relief Fund
You may enter amounts received from a military relief fund as long as these amounts are included in your federal AGI.
Contributions To A STABLE Account
Ohio taxpayers that contribute to a STABLE Account can subtract up to $4,000 per beneficiary.
Certain payments related to the East Palestine train derailment
May report income related to the East Palestine train derailment on February 3, 2023. This includes reimbursements for personal, living, or funeral expense, home repair costs, and compensation for injuries or death. Deductions apply if not covered by insurance.
Ohio Adoption Grant Payments
You may deduct amounts received from the Ohio Department of Job and Family Services as a one-time grant payment for an adopted child and included in your federal adjusted gross income.
Unreimbursed Medical Care Expenses
You may deduct medical expenses in excess of 7.5% of your federal AGI, certain dental, vision, and health insurance premiums, long term care insurance premiums, and accidental/health insurance premiums paid for dependents. When entering these deductions, do not include any amounts that were reimbursed to you.
Nonresident Income from Ohio Disaster Work
You may deduct income that you earned by out-of-state business owners and employees who conduct disaster work in Ohio. Eligibility for this credit include:
- You must be a non-resident of Ohio.
- The income was received in Ohio for disaster work during a disaster period.
- You did not receive any other Ohio income during the tax year.
Ohio Educator Expenses
Qualifying Ohio educators can deduct any educator expenses in excess of the Federal educator expense deduction. This deduction is limited to $250 per qualifying educator.
Form OH-IT-Bus (Business Income Schedule)
Taxpayers can subtract $250,000 ($125,000 married filing separately) of their business income that is included in their federal AGI in Ohio. Business income that was not eligible to be deducted is taxed at 3%. You must also complete OH-IT-Bus to claim the business income deduction on the federal return.
- State Section
- Ohio Return
- Subtractions from Income