Legal Resources

Tax Reform Frequently Asked Questions

Regarding partnership K-1s: A CPA is preparing a partnership return with all Ohio residents, but files state composite returns in PA, KY and IN. For Ohio purposes, does the partner get full credit for the Small Business Investor Income deduction if the partner receives a credit for withholding taxes paid to the other states?

  • The Small Business Investor Income deduction is based on Ohio sourced income only. Taxpayers may still avail themselves of the resident credit for withholding paid to other states as that is not a factor in the computing of the Small Business Investor Income deduction.