Frequently Asked Questions

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Provide an example of a completed Ohio form IT 4708 which sets forth an amount on line 19, pass-through entity credit.

  • PTE #1 is equally owned by PTE A and PTE B.
  • All the investors in PTE A and PTE B are full-year non-Ohio individuals, and they have no other Ohio-sourced income.
  • All three partnerships are operating partnerships, have Ohio apportionment factors of 1.000000 and have no allocable income.
  • PTE #1’s profit apportioned to Ohio is $80,000.
  • PTE A’s profit apportioned to Ohio is $160,000 (this amount does not include A’s share of #1’s profit).
  • PTE B’s profit apportioned to Ohio is $260,000 (this amount does not include B’s share of #1’s profit).
  • Each of the three partnerships files Ohio form IT 4708 and pays the tax shown thereon.

Form IT 4708 Computation---PTE #1

 

Income apportioned to Ohio                               

$80,000

Income allocated to Ohio                  

0

Ohio Taxable Income

$80,000

Times: tax rate for year 2012

x.05925

Tax before credit(s)

$4,740

Less: Line 19 "PTE Credit"

(0)

Tax after refundable credits

$4,740

 

 

Form IT 4708 Computation---PTE A

 

Income apportioned to Ohio ($160K + $40K)

$200,000

Income allocated to Ohio

0

Ohio taxable income

$200,000

Times: tax rate for year 2012

x .05925

Tax before credit(s)

$11,850

Less: Line 19 "PTE Credit" (50% X $4,740)

(2,370)

Tax after refundable credits

$14,220

 

 

Form IT 4708 Computation---PTE B

 

Income apportioned to Ohio ($260K + $40K)

$300,000

Income allocated to Ohio

0

Ohio taxable income

$300,000

Times: tax rate for year 2012

x .05925

Tax before credit(s)

$17,775

Less: Line 19 "PTE Credit" (50% X $4,740)

(2,370)

Tax after refundable credits

$20,145

Notes:

(1) Because PTE A and PTE B equally own PTE #1, PTE A and PTE B must each include in income one-half of PTE #1's profit.

(2) PTE A and PTE B can each claim one-half of the form IT 4708 tax which PTE #1 paid.

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