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Tax Reform Frequently Asked Questions

Does the small business deduction flow through to school district income taxes?

  • The deduction will not impact the calculation of a taxpayer's school district income tax liability for those who reside in a traditional tax base school district. Instead, it will be added back to Ohio taxable income for school district income tax purposes. If you took the small business investor deduction on Schedule A, line 41, of your 2014 Ohio form IT 1040 and you reside in a traditional tax base school district, you must add the amount deducted back on line 18 of your 2014 Ohio SD 100. For those who reside in an earned income base tax school district, there is no similar add back of this deduction.

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