Legal Resources

Tax Reform Frequently Asked Questions

What is changing?

For taxable years beginning on or after Jan. 1, 2013, a nonbusiness, nonrefundable earned income credit is available for taxpayers who were eligible for the federal earned income tax credit (EITC) on their federal tax returns. The Ohio earned income credit (Ohio EIC) is equal to 5% of the taxpayer's federal EITC. However, if the taxpayer's Ohio taxable income (Ohio adjusted gross income less exemptions) exceeds $20,000 on either an individual or joint tax return, then the credit is limited to 50% of the tax otherwise due after deducting all other credits that precede the credit except for the joint filing credit.

For taxable year 2014, the Ohio EIC will increase to 10% of the taxpayer's federal EITC.