Ohio law allows five different subtractions for military servicemembers, their spouse's, and veterans to include:
Ohio Resident Veterans Bonus
Bonuses that the Ohio Department of Veterans Services paid to you as a veteran of the Persian Gulf, or Afghanistan and Iraq conflicts should not be included in your federal adjusted gross income. Payments made by the state of Ohio for the Ohio Veterans Bonus Program are also excluded from federal gross income. Since these payments are not included in the federal adjusted gross income, you are not able to deduct them on the state return as they have not been included in your income.
Military Pay for Ohio Residents-Stationed Outside Ohio
Subtract military compensation if the following apply:
- Compensation is included in federal AGI
- You received it while stationed outside Ohio
- You are an Ohio resident AND
- You were on active duty in the US Army, Navy, Marines, Air Force, Coast Guard or reserves and the National Guard.
To enter the deductions in the program follow these steps:
- State Section
- Ohio Resident Return
- Subtractions From Income
- Military pay for Ohio residents received while the military member was stationed outside Ohio
- Continue
Uniformed Services Retirement Income
Subtract your military retirement from all branches of the uniformed services including Army, Navy, Air Force, Marines, Coast Guard, NOAA and the Public Health Service, if the military retirement income was also included in your federal Adjusted Gross Income.
To enter the deductions in the program follow these steps:
- State Section
- Ohio Resident Return
- Subtractions From Income
- Enter Uniformed Services Retirement Income amount
- Continue
Ohio National Guard Reimbursements and Benefits
Subtract reimbursements of group life insurance paid or death benefits included in your federal AGI that are paid by Ohio.
To enter the deductions in the program follow these steps:
- State Section
- Ohio Resident return
- Subtractions From Income
- Ohio National Guard Reimbursements and Benefits - enter amount
- Continue
Military Injury Relief Fund
Any military injury relief fund amounts you receive related to physical or psychological injuries that resulted from military action in Operation Iraqi Freedom or Operation Enduring Freedom are not to be included in your federal adjusted gross income.
Any other military relief funds received are included in federal adjusted gross income. But you are able to deduct these on your Ohio return.
To enter the deductions in the program follow these steps:
- State Section
- Ohio Resident return
- Subtractions From Income
- Military Injury Relief Fund - enter amount
- Continue
Nonresident Military and Civilian Spouse Wages
Subtract the nonresident servicemember military wages if included in federal AGI and the servicemember's civilian spouse if they both have the same state of non-residence and the spouse and servicemember are only in Ohio due to military orders.
To enter the deductions in the program follow these steps:
- State Section
- Ohio Resident return
- Subtractions From Income
- Certain income earned by military nonresidents and civilian nonresident spouses
- Continue