Ohio has made the following changes to their tax laws regarding 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.
New in Credits
Welcome Home Ohio credit - To obtain this Ohio Department of Development (ODOD) credit, you include a copy of the ODOD certificate specifying the credit amount and the awarded tax year. If the credit is linked to ownership in a pass-through entity, provide documentation indicating your share of credit. Any unused credit may be carried forward up to 5 years. For detailed requirements, please visit development.ohio.gov.
Ohio low-income housing credit & Affordable single-family home credit - To obtain these Ohio Finance Agency (OHFA) credits, you must submit a copy of the credit certificate detailing the annual amount and the awarded period. If applicable, include the designated reporter's report indicating the allocated annual credit to you, as the credit cannot be claimed without inclusion in this report. Any unused credit may be carried forward up to 5 years. For detailed requirements, please visit ohiohome.org.
Beginning Farmers Finance Management Nonrefundable Credit - This credit is issued by the Department of Agriculture (ODA), requires attaching the ODA certificate indicating the credit amount and applicable tax year for claiming purposes. Any unused credit may be carried forward for up to 3 years. For detailed requirements, please visit agri.ohio.gov.
Beginning Farmers Assets Nonrefundable Credit - This credit is issued by the Department of Agriculture (ODA), requires attaching the ODA certificate indicating the credit amount and applicable tax year. If the credit is tied to ownership in a pass-through entity, provide documentation indicating your share of credit. Any unused credit may be carried forward up to 7 years. For detailed requirements, please visit agri.ohio.gov.
New in Deductions
Ohio Adoption Grant Deduction - Taxpayers may deduct amounts received from the Ohio department of Job and Family Services constituting a one-time grant payment for an adopted child, which should be included in your federal adjust gross income.
Three distinct grant categories are applicable to adoptions finalized on or after January 1, 2023:
- $10,000 for a conventional adoption
- $15,000 if the adoptive parent served as a foster caregiver for the child prior to adoption
- $20,000 if the adopted child has a diagnosed special need
Further information can be found at AdoptionGrant.ohio.gov.
New in Form SD-100
The SD-100 form has been updated, allowing taxpayers to file for multiple school districts on a single return.