OFFSET

STATE TAX REFUND OFFSET PROGRAM

The Ohio Department of Taxation (ODT) issues State tax refunds and The Ohio Administrative code 5101:1-1-90 authorizes ODT to conduct the State Tax refund offset program.  This program allows the offset of your income tax refund (overpayment) to pay:

You can contact the agency with which you have a debt to determine if your debt was submitted for a tax refund offset. If you receive an Ohio tax offset, you will receive a letter explaining that your refund has been offset and the state agency that is receiving your refund instead. If your refund is more than the amount you owe to the agency listed in your offset letter, you will receive the balance of your refund after the state debt amount is deducted.

If you filed a joint return and you're not responsible for your spouse's debt, you're entitled to request your portion of the refund back from the ODT. You may file a claim for this amount by completing and returning The Notice of Proposed Income Tax Refund Offset or the Non liable spouse worksheet.

Non-Liable Spouse (NLS) Worksheet Help Information

Line 1. Non-Liable Spouse’s Ohio income tax withholding

Enter the Non-liable Spouse’s Ohio withholding amount reported in the box or on the line of the form indicated below for the taxable year being offset.

  • W-2 (box 17)
  • W-2G (box 15)
  • 1099-R (box 12)
  • 1099-MISC (box 16)
  • Ohio K-1 (new Ohio form), line 4
     
    • If the Non-liable Spouse had no Ohio withholding enter zero.

Line 2. Non-liable Spouse’s portion of Ohio estimated and 40P extension payments

Enter the portion of the Non-liable Spouse’s Ohio estimated and 40P extension income tax payments submitted on Form IT-1040ES or IT-40P payment vouchers for the taxable year being offset.

  • If the Non-liable Spouse had no Ohio estimated and/or extension payments enter zero.

Line 3. Non-liable Spouse’s total tax payments (Line 1 plus Line 2)

Line 1 plus line 2 for the Non-liable Spouse’s total tax payments. Please note, the electronic version of the NLS will auto calculate this line.

Line 4. Non-liable Spouse’s portion of Federal Adjusted Gross Income included on the Ohio IT 1040 line 1

Enter the portion of the Non-liable Spouse’s income included in the Federal Adjusted Gross Income that was reported on the Ohio IT 1040 return line 1 for the taxable year being offset.

  • If the Non-liable Spouse had no income included in the Federal Adjusted Gross Income enter zero.

Line 5. Non-liable Spouse’s portion of Ohio Schedule A Additions

Enter the portion of the Non-liable Spouse’s income that was not included in the Federal Adjusted Gross Income and is being added back on Ohio Schedule A for the taxable year being offset. Depending on the taxable year the Schedule A additions appear on different lines.

  • 2016 Ohio IT-1040 original or amended returns, line 2a or 2016 Ohio Schedule A, line 10.
  • 2015 Ohio IT-1040 original or amended returns, line 2a or 2015 Ohio Schedule A, line 11.
  • 2014 Ohio IT-1040 original or amended returns, line 36.
  • 2013 Ohio IT-1040 original or amended returns, line 36.
  • 2012 Ohio IT-1040 original or amended returns, line 34.
     
    • If the Non-liable Spouse had no income additions on Ohio Schedule A enter zero.

Line 6. Non-liable Spouse’s portion of Ohio Schedule A Deductions

Enter the portion of the Non-liable Spouse’s income that was included in the Federal Adjusted Gross Income and is being deducted on Ohio Schedule A for the taxable year being offset. Depending on the taxable year the Schedule A deductions appear on different lines.

  • 2016 Ohio IT-1040 original or amended returns, line 2b or 2016 Ohio Schedule A, line 35.
  • 2015 Ohio IT-1040 original or amended returns, line 2b or 2015 Ohio Schedule A, line 35.
  • 2014 Ohio IT-1040 original or amended returns, line 49.
  • 2013 Ohio IT-1040 original or amended returns, line 49.
  • 2012 Ohio IT-1040 original or amended returns, line 46.
     
    • If the Non-liable Spouse had no income deduction on Ohio Schedule A enter zero.

Line 7. Non-liable Spouse’s portion of Ohio Adjusted Gross Income

Lines 4 plus 5 minus line 6 for the Non-liable Spouse’s portion of the Ohio Adjusted Gross Income. Please note, the electronic version of the NLS will auto calculate this line.

Line 8. Enter your total Ohio Adjusted Gross Income from Ohio IT 1040 line 3

Enter the amount reported on line 3 of the Ohio IT 1040 return for the taxable year being offset.

Line 9. Divide Line 7 by Line 8

Divide line 7 by line 8 for the Non-liable Spouse’s percentage portion of the Ohio Adjusted Gross Income. Please note, the electronic version of the NLS will auto calculate this line.

Line 10. Total Ohio tax liability BEFORE withholding of estimated payments

Enter the amount reported on the line of the Ohio IT 1040/1040EZ/1040X return indicated below for the taxable year being offset.

  • 2016 Ohio IT-1040 original or amended returns, line 13.
  • 2015 Ohio IT-1040 original or amended returns, line 13.
  • 2014 Ohio IT-1040 original return, line 20.
  • 2014 Ohio IT-1040EZ original return, line 17.
  • 2014 Ohio IT-1040X amended return, line 19.
  • 2013 Ohio IT-1040 original return, line 20.
  • 2013 Ohio IT-1040EZ original return, line 17.
  • 2013 Ohio IT-1040X amended return, line 19.
  • 2012 Ohio IT-1040 original return, line 18.
  • 2012 Ohio IT-1040EZ original return, line 15.
  • 2012 Ohio IT-1040X amended return, line 17.

Line 11. Multiply Line 9 by Line 10

Multiply line 9 by line 10 for the Non-liable Spouse’s portion of the total Ohio tax liability. Please note, the electronic version of the NLS will auto calculate this line.

Line 12. Non-liable Spouse’s Refund

Subtract line 11 from line 3 for the Non-liable Spouse’s portion of the refund. Please note, the electronic version of the NLS will auto calculate this line.

OFFSET FAQ’S

Why am I receiving an Ohio Income Tax Refund Offset letter?Can you resend the Ohio Income Tax Refund Offset letter that includes the non-liable spouse worksheet if I never received it or I lost it?Can I file the Ohio Non-Liable Spouse (NLS) worksheet with my Ohio IT 1040?I previously paid the reporting agency liability prior to receiving this letter. How do I get my refund issued to me and not to the reporting agency?If we are not entitled to treatment as a non-liable spouse and we are in agreement with the portion of our refund being offset to pay the outstanding debt to the reporting state of federal agency, when can we expect to receive our portion of the refund?I previously provided documentation to support that I didn’t owe the Ohio tax liability (assessment) indicated on the Ohio Income Tax Refund Offset letter. What do I need to do to avoid having my refund being used to offset against this liability not owed?I previously provided documentation to support that I didn’t owe Back Child Support (or other non ODT debts) to the other non-ODT agencies indicated on the Ohio Income Tax Refund Offset letter. What do I need to do to avoid having my refund being used to offset against this liability not owed?Am I responsible for a tax-related debt (an assessment issued by ODT or the IRS) that occurred while married to a spouse, even though I am no longer married to that spouse?Why is my refund that is being used to pay off the balance of the outstanding debt owed to the state or federal agency indicated on the Ohio Income Tax Refund Offset Letter not showing up on my account at the agency and how long until the reporting agency updates their records?If I respond within the 28 day response window that I am entitled to treatment as a non-liable spouse, will the Ohio Department of Taxation send me a notice with the adjustments made to my account with the amount of my refund?Does The Ohio Department of Taxation accept Internal Revenue Service (IRS) 8379 “Injured Spouse Allocation” form?