Which National Guard reimbursements and benefits can I deduct?

You can deduct the following amounts, but only if (a) they're included in your federal adjusted gross income and (b) you haven't already deducted them elsewhere on your Ohio tax return:
  1. Ohio Adjutant General-authorized Ohio National Guard reimbursements you received for group life insurance premiums you paid; AND
  2. Ohio Adjutant General-authorized payments of death benefits you received as a beneficiary of an active duty member of the Ohio National Guard who died while performing active duty.

What is the Displaced Worker Training Credit?

This credit is allowed for amounts you pay for any 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. To take this credit, you'll need to meet ALL of the following eligibility requirements:
  1. You must have lost 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 doesn't include layoffs resulting from seasonal employment, temporary plant closings for retooling, etc.)
  2. During the 12-month period beginning when you lost your job, you must have paid for displaced worker training.
  3. While you were receiving displaced worker training you must have been either unemployed or working no more than 20 hours a week.

If you meet the above criteria, then your displaced worker training credit is one-half of your job training expenses paid during the year, but can't exceed $500. Don't include any amount that was reimbursed. Also, do NOT include amounts you 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 new job - for example, career planning, profile analysis, skills assessment, resume writing, marketing action plan etc. that you pay for in your endeavor to find a new job. These training classes are not to improve the skills that you'd use to perform the functions or tasks associated with a new job.

So if you paid $1,500 for your qualified displaced worker training, then one-half of your displaced worker training expenses is $750, which is more than $500, so your displaced worker training credit is $500. Also, if you took the displaced worker training credit on last year's tax return, you can't have more than $500 in displaced worker training credit between the two years. For example, if you took a $300 job training credit on last year's tax return then, the most you can get this year is $200 (assuming your expenses were $400 or more this year).

If your filing status is married filing jointly, each spouse can take a credit for up to $500 for displaced worker training (for a total of up to $1,000), subject to the requirements listed above.

Am I eligible for the Ohio 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 credit is $1,500 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. "Legally adopt" does not include the adoption of a minor child by the child's stepparent.

Why isn't my K-1 showing up on this screen?

If you entered a K-1 on the federal screen that isn't showing up on this screen, it's because you didn't enter an Employer Identification Number on the federal screen. Ohio requires the EIN of the partnership, S corporation, or estate in order to claim a refundable pass-through entity credit.

If you have an EIN for your partnership, S corp, or estate, go back to the federal partnership, S corporation, or estate screen where you entered the K-1 that has the refundable pass-through entity credit. Enter the Employer Identification Number for that partnership, S corporation, or estate K-1, then come back to this screen, where your K-1 will then be showing, to enter your refundable pass-through entity credit.

If your partnership, S corporation, or estate does NOT have an EIN, then Ohio doesn't allow you to claim the refundable pass-through entity credit.

Will my donation to the Ohio Political Party Fund decrease my refund or increase the amount of tax I owe?

No.

Choosing to donate to the Ohio Political Party Fund will neither increase the tax due nor reduce the refund shown on you return. If your filing status is Single or Head of Household, Married Filing Separately, or Qualifying Widow(er), and your tax is $1 or more, you may choose to have $1 go to this fund by answering Yes on the screen. If your filing status is Married Filing Jointly, and your tax is $2 or more, each of you may choose to have $1 go to this fund by answering Yes on the screen.

The Ohio General Assembly established this fund to support public financing of Ohio political parties. Money from this fund may only be used for administrative costs associated with party headquarters, party fund-raising drives, organization of voter registration, and get-out-the-vote campaigns not related to any particular candidate or election.

What if I don't know my school district number?

If the school district in which you lived on the last day of 2014 is not listed, choose "Other", then type in the 4-digit school district code. To find this code, go to Ohio's school district code Finderand follow the directions to look up your school district by entering your home address or zip code.

What military pay can I deduct?

If you are an Ohio resident servicemember, you can deduct your active duty military pay and allowances that are included in federal adjusted gross income, as long as those amounts were received while you were stationed outside of Ohio. Do not deduct any other types of income such as civilian wages, interest, dividends, or capital gains.

Please note that the Nov. 11, 2009 amendment to the Servicemembers Civil Relief Act of 2003 does not apply to Ohio-domiciled spouses of servicemembers who reside with their spouses outside the state. These spouses are presumed to retain their Ohio domicile.

The term "stationed" means your permanent duty station as an Ohio active duty servicemember, or an Ohio resident servicemember in the National Guard or military Reserve forces. For purposes of this exemption, "permanent duty station" means the military installation where you're currently assigned and physically located under competent orders that don't specify the duty as temporary. Periods of training in which you, either individually or as part of a unit, leave your permanent place of duty and then return following the completion of the training, aren't included in the definition of "stationed". However, periods of active duty outside Ohio for purposes other than training, or periods of training greater than 30 days outside Ohio, as described below, qualify you for this exemption.

If you're stationed inside Ohio, your military pay and allowances will continue to be subject to Ohio individual income tax. These amounts will also be subject to school district income tax if you're domiciled in a taxing school district, even if you didn't reside in the school district at any time during the taxable year.

Examples of military pay and allowances that do qualify for this deduction include the following amounts, but only if you received the amounts while stationed outside Ohio:
  • Military pay and allowances you received while a member of the active component of the U.S. armed forces and assigned to a permanent duty station outside Ohio.
  • Military pay and allowances you received while a member of the active component of the U.S. Armed Forces, if you're assigned to a permanent duty station inside Ohio, only for periods of duty outside Ohio for purposes other than training, or periods of training greater than 30 days outside Ohio.
  • Military pay and allowances you received while a member of the Ohio National Guard or the Reserve components of the U.S. Armed Forces in an active duty status outside Ohio, or for periods of training greater than 30 days, outside Ohio.
  • Military pay and allowances you received while a member of a unit of the Ohio National Guard or the Reserve components of the U.S. Armed Forces under federal mobilization orders under which the unit mobilizes for training at a non-Ohio location followed by an operational deployment to any non-Ohio location.
  • Military pay and allowances received by cadets at the U.S. service academies, specifically the Military Academy, the Air Force Academy, the Coast Guard Academy and by midshipmen at the Naval Academy. Cadets and midshipmen who are serving on active duty under the provisions of 38 United States Code section 101(21) and are eligible for this deduction for the pay they receive while stationed at these facilities to the extent that this pay is included in federal adjusted gross income (line 1 on Ohio form IT 1040). However, this deduction is not available for pay received for service in the Reserve Officer Training Corps.

Even if all your income is military pay, and thus exempt from Ohio income tax, you are still required to file an Ohio personal income tax return.

How do I know if my health insurance is subsidized?

If any employer pays for part of the plan's costs, then the plan is subsidized. An unsubsidized health care insurance plan is a plan that no employer or former employer pays or reimburses you for part of the plan's costs.

Most people who receive wage or salary income from an employer participate in a subsidized plan. If you're not sure, check with your employer.

How is the Ohio Political Contributions Credit calculated?

The amount of the credit is either the total cash contributions you made during the year to candidates for qualified Ohio offices or $50 ($100 for Married Filing Jointly returns), whichever is less.

We'll calculate this credit amount for you. Just enter the total amount of eligible contributions you made during the year.

Where do I send my certificate for the Historic Preservation Credit?

If you're claiming this credit, you'll need to send the certificate you received from the Ohio Development Services Agency (ODSA) to the Ohio Department of Taxation. Send this certificate to:

Ohio Department of Taxation
Taxpayer Services
P.O. Box 182382
Columbus, Ohio 43218-2382

If you have any further questions about claiming this credit, call the ODSA at 614-995-2292 or 1-800-848-1300, or visit the ODSA website.

What organ donation expenses qualify for this subtraction?

Qualified organ donation expenses are unreimbursed travel and lodging expenses that you incur in connection with your donation to another human being for your liver, pancreas, kidney, intestine, lung or any portion of your human bone marrow.

You can claim this deduction only once for all taxable years. If you claim the deduction for this year, you can't claim this deduction in a later year. If your filing status is Married Filing Jointly, and if you and your spouse both claim the deduction this year, neither can claim this deduction in any subsequent year. However, if your filing status is Married Filing Jointly, but only one spouse claims this deduction for this year, the other spouse can claim the deduction in a subsequent year - regardless of your spouse's filing status in that subsequent year.

What income qualifies for this credit?

Qualifying income includes any portion of your Ohio adjusted gross income that is subject to tax by another state as well as Ohio. The credit is to combat any double-taxation (taxation by Ohio and by the other state). If the income in question will be taxed by Ohio, but has not been (or will not be) taxed by another state, then you are not entitled to this credit.

If you earned wages, salaries, tips, or commissions in Indiana, Kentucky, West Virginia, Michigan, or Pennsylvania, do NOT include it here. This income is not taxed, so it doesn't qualify for the credit.

What are non-education expenditures from college savings accounts?

If you received a distribution during 2014 reported to you on a 2014 Form 1099-Q from the CollegeAdvantage program, and part of your distribution was NOT used to pay for qualified higher education expenses and was NOT due to the beneficiary's death, disability, or receipt of a scholarship, you may need to include part of the distribution in your Ohio income.

If all of the money you withdrew from the College Advantage program account was used for qualified higher education expenses or was withdrawn because of the beneficiary's death, disability, or receipt of a scholarship, don't include it as a non-education expenditure from college savings accounts addback.

Here are the rules for what you do and don't need to include as an addback (these only apply if you are a College Advantage account owner or beneficiary):
  • You don't have to include any amount you used to buy tuition credits or units before January 1, 2000.
  • You need to include the portion of the distribution from your College Advantage 2014 Form 1099-Q that's from original contributions or purchases made that aren't excluded by being purchased before January 1, 2000. This is the nonearnings portion (usually the original contribution or purchase price unless the account has declined in value below these amounts), and it only needs to be included if either the account owner or the beneficiary has taken an Ohio contribution deduction for the contributions or purchases this year or in a prior year.
  • You need to include the earnings portion of the distribution from your 2014 Form 1099-Q that you haven't already included in your Ohio adjusted gross income for either the current taxable year or for any previous years.
Contribution Carryovers: If you're carrying over a contribution deduction to future years, you'll need to reduce the amount you carry over to the extent that your nonearnings distributions (the 2nd list item above) (a) exceed contribution deductions taken in this and prior years and (b) are reflected on your contribution deduction carryover to future years' returns.

Can I deduct my Medical Savings Account contributions?

You may be able to deduct the amount of funds you deposited into a medical savings account. If filing a joint return, your spouse may also be able to deduct his/her funds deposited into his/her medical savings account.

For 2014, the maximum amount of deposited funds you may be able to deduct is $4,506. If filing a joint return, each spouse may be able to deduct up to $4,506 of deposited funds into his/her account for a maximum joint deduction of $9,012. Any investment income or interest earned on the funds deposited into a medical savings account is deductible if the income or interest is included in your federal adjusted gross income (Line 1 of your Ohio Form IT 1040). Note: You must reduce the amount of this deduction by any amount that you claimed on Line 25 of your federal Form 1040.

To determine if you are eligible for this deduction, complete the Medical Savings Worksheet and enter the amount from Line 6 on the screen.

What is a Medical Savings Account and what are the qualifications?

A medical savings account is used to pay eligible medical expenses of the account holder, a spouse, and dependents. A medical savings account can be opened by or on behalf of a person that participates in a sickness and accident plan, a plan offered by a health maintenance organization or a self-funded, employer sponsored health benefit plan pursuant to the federal Employee Retirement Income Security Act.

You must designate an administrator for the medical savings account at the time you open the account. Account holders are generally permitted to withdraw the funds at any time for any reason. However, account administrators may not return any funds deposited during the year of deposit except for reimbursement of eligible medical expenses. Any withdrawals for a nonqualifying medical purpose may result in increased Ohio taxes. An "eligible medical expense" includes any expense for a service rendered by or for an article, device, or drug prescribed by a licensed healthcare provider or provided by a Christian Science practitioner.

What qualifies for this Military/Civil Service Retirement Deduction?

If you retired from service in the active or reserve components of the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard, or National Guard, commissioned corps of the National Ocean and Atmospheric Administration or the Public Health Service, you can deduct your military retirement income to the extent that income is not otherwise deducted or excluded in computing federal or Ohio adjusted gross income.

If you served in the military and receive a federal civil service retirement pension, you're also eligible for a limited deduction if any portion of your federal retirement pay is based on credit for your military service. You can deduct only the amount of your federal retirement pay that is attributable to your military service.

If you're eligible for this limited deduction, refer to your federal civil service retirement benefit handbook to determine the number of years of your military service. Divide the number of years of military service by the total number of years of combined military service and civilian employment with the U.S. government. Take this fraction and multiply it by the amount of your federal civil service pension you have included on line 1 of this return. The resulting number is the amount of your federal civil service pension that you can deduct.

Example: The taxpayer has included on line 1 of this return $60,000, which the taxpayer received as a federal civil service pension. The taxpayer has 15 years of military service and 45 years of combined military service and civilian employment with the U.S. government. The fraction is 15/45 = 1/3. The taxpayer can deduct $20,000 here: 1/3 x $60,000.

If you do not have your federal civil service retirement handbook, contact the U.S. Office of Personnel Management (OPM) at 1-888-767-6738 or TDD 1-800-878-5707. You may also email OPM at retire@opm.gov or visit the OPM website to request the booklet. Please be sure to specify that you want a replacement booklet (there are other types). An OPM customer service representative will tell you how much military and total service time you have in your retirement calculation and can mail you a screen print or short form letter with the information.

The military retirement income also applies to such amounts received by the surviving spouse or the former spouse of each military retiree who is receiving payments under the survivor benefit plan.

Please note that Ohio may later ask you for a copy of the divorce agreement and IRS Form 1099-R as verification for the deduction. Note that child support receipts, regardless of the source, are not included in federal adjusted gross income, so you can't deduct these amounts.

Also enter Military Injury Relief Fund amounts you reported on line 1 (federal adjusted gross income). You do not have to include in the federal adjusted gross income, and you can't enter, those military injury relief fund amounts you received on account of physical injuries or psychological injuries, such as post-traumatic stress disorder, if those injuries are a direct result of military action Operation Iraqi Freedom or Operation Enduring Freedom. But you must include any other Military Injury Relief Fund amounts you received.

How will contributions to the Military Injury Relief Fund be used?

The Military Injury Relief Fund gives grants to individuals who were injured while in active service as a member of the United States' armed forces while serving under Operation Iraqi Freedom or Operation Enduring Freedom.

For more information or to donate directly, contact the Ohio Department of Job and Family Services at:

Ohio Department of Job and Family Services
Military Relief Fund
P.O. Box 182367
Columbus, OH 43218-2367

How will contributions to the Natural Areas/Endangered Species Fund be used?

Contributions will be used to manage natural areas, improve public facilities, and provide educational opportunities in an effort to protect Ohio's nature and preserve endangered species and rare habitat.

For more information or to donate directly, contact the Ohio Department of Natural Resources at:

Ohio Department of Natural Resources
Division of Natural Areas and Preserves
2045 Morse Road, Building C-3
Columbus, OH 43229-6693

You can also visit the Natural Areas/Endangered Species website.

How will contributions to the Wildlife Species and Endangered Wildlife Fund be used?

The Division of Wildlife uses these funds to establish habitat and protect open spaces for wildlife. Past donations have helped to restore populations of endangered species.

For more information or to donate directly, contact the Ohio Department of Natural Resources at:

Ohio Department of Natural Resources
Division of Wildlife
2045 Morse Road, Building G-2
Columbus, OH 43229-6693

You can also visit the Wildlife Species and Endangered Wildlife website.

What are 2014 estimated tax payments?

  • Enter any estimated tax payments you made for 2014.
  • Enter any amounts that were credited from your 2013 return.
  • Enter any amount you prepaid with extension requests.

Do NOT enter any amount of your 2014 Ohio Income Tax withheld by your employer(s) as shown on any wage or tax statements.

Which benefits do NOT qualify as Deductible Disability or Survivorship Benefits?

You may NOT deduct the following:
  • Payments that otherwise qualify as retirement or pension benefits. When you reach your plan's minimum retirement age, the disability benefits you receive under that plan become retirement or pension benefits and are no longer deductible as disability or survivorship benefits. If you don't know the minimum retirement age under your plan, please contact your plan administrator for this information.
  • Temporary wage continuation plans.
  • Payments for temporary illnesses or injuries (for example, sick pay provided by an employer or third party).
  • Pension payments that another person was receiving but he/she died (pension continuation benefits). These amounts are not deductible survivorship benefits.

What if I contributed more than $2,000 per beneficiary this year? Can my excess contributions to the Ohio CollegeAdvantage 529 Savings Plan be carried over to next year?

Yes.

Qualifying amounts that you contributed ABOVE the $2,000 limitation may be deducted on future years' returns. These contributions that you carry over are still subject to the annual $2,000 per beneficiary limitation, and you may carry them over until all unused amounts have been deducted.

Married taxpayers may deduct up to a maximum of $2,000 per beneficiary whether their filing status is married filing jointly or married filing separately.

What are some examples of common qualifying health care expenses?

As long as they were unreimbursed (meaning your insurance company or employer did NOT pay you back), any amount you paid for the following items qualifies:
  • Prescription medicine or insulin
  • Hospital costs and nursing care
  • Medical, dental, and vision examinations and treatment by a certified health professional
  • Eyeglasses, hearing aids, braces, crutches, and wheelchairs
Do NOT include premiums for long-term care insurance, as these premiums need to be entered separately.

If you were eligible to participate in Medicare and/or a subsidized health insurance plan for only a portion of the year, you can enter the dental, vision, and health care insurance premiums you paid for that portion of the year during which you were NOT eligible to participate in Medicare and/or a subsidized health insurance plan.

Do I qualify for the Ohio Retirement Income Credit?

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

  • You received retirement benefits, annuities, or distributions that were made from a pension, retirement, or profit sharing plan; AND
  • You received this income because you have retired; AND
  • This income is included in your Ohio adjusted gross income.
Note: If you previously took a lump sum retirement income credit, you CAN'T take the retirement income credit on this year's return or any future year's return.

What is the maximum credit I can receive on my tax return if I qualify for the Ohio Retirement Income Credit?

If you qualify for the retirement credit, the maximum credit you can receive is $200.

If you qualify for the retirement credit and the amount of qualifying retirement income you received and included in Ohio adjusted gross income is $500 or less, you will receive no credit.

If your qualifying retirement income is more than $500, but not more than $1,500, the credit is $25.

If your qualifying retirement income is more than $1,500, but not more than $3,000, the credit is $50.

If your qualifying retirement income is more than $3,000, but not more than $5,000, the credit is $80.

If your qualifying retirement income is more than $5,000, but not more than $8,000, the credit is $130.

If your qualifying retirement income is more than $8,000, the credit is $200.

What if I have already paid my tax on my out-of-state purchase?

If you previously paid your Ohio use tax by filing Form VP Use, you don't have to report the use tax on your Ohio income tax return.

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