Questions & Answers

Why should I claim the Lump Sum Distribution Credit now instead of the Senior Citizen Credit each year?

Ohio allows you to either claim the Lump Sum Distribution Credit once, or the Senior Citizen Credit each year.

By taking the Lump Sum Distribution Credit you usually get a much larger credit now rather than having to wait and take a smaller credit over many years. This is advantageous to many people.

However, if you don't have much Ohio tax liability to apply the credit towards, you won't get as much benefit out of it. You can't carry forward unused Lump Sum Distribution Credit amounts to future years so what isn't used this year is lost. People in this situation might find more benefit in getting a guaranteed smaller credit each year rather than a large one just this year, much of which they can't even use.

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