FAQs - Individual Income Tax

Do I need to file an Ohio income tax return?

Yes, unless one or more of the following apply:

• You are single and your federal adjusted gross income is less than or equal to $11,700 and you have no Schedule A adjustments.
• You are married, filing jointly and your federal adjusted gross income is less than or equal to $13,400 and you have no schedule A adjustments.
• Your only source of income is retirement income that is eligible for the retirement income credit (line 51) and the credit is the same or larger than your tax before credits (line 6).
• Your exemption amount (line 4) is the same as or more than your Ohio adjusted gross income (line 3) and you have no Schedule A adjustments.

Background

Retirement, pension and annuity income are all taxable. The Ohio return provides a credit for retirement and pension income that is received on account of retirement. The credit is capped at $200.00 and is based upon the amount of the distribution reported on form 1099R. The credit is not applicable for separation of employment, loans against the retirement plan, or rollovers.

Senior citizens 65 years of age and older are entitled to an additional $50.00 tax credit. Also, certain social security income, railroad retirement income and annuities may be deductible.

Interest and dividend income from obligations issued by the United States government or its possessions/territories are exempt from Ohio tax by law. Such obligations include U.S. savings bonds (Series E, EE, H or I), Treasury notes and bills, and Sallie Maes. Please see the Schedule A deductions in the year 2013 form IT 1040 individual income tax booklet for more information.

Residency

For Ohio residents, retirement income, pension income and annuity income are taxable regardless of where received by the taxpayer. For example, a full year Ohio resident who spends part of the year in Ohio and part of the year in Florida and who receives a pension is liable for Ohio income tax on the entire amount of the pension received during the taxable year. This is true regardless of the location where the taxpayer worked in prior years to earn the pension.

For non-Ohio residents, retirement income, pension income and annuity income are not subject to Ohio income tax regardless of the location where the taxpayer received the income. For example, a full-year Indiana resident who spends part of the year in Ohio and part of the year in Indiana and who receives a pension is not liable for Ohio income tax on that income. This is true regardless of where the taxpayer worked in prior years to earn the pension.

Part-year Ohio residents are persons who changed their permanent residence from or to Ohio during the taxable year. A person whose residence is Ohio but who spends several months outside Ohio during the year is not a part-year resident but is a full-year Ohio resident. For part-year Ohio residents, retirement income, pension income and annuity income received while a resident of Ohio are taxable.

For more information:

• You may call us toll-free at 1-800-282-1782.

• You may also E-Mail Us your questions.

• Visit our Web site at www.tax.ohio.gov/ to obtain a copy of the current  IT1040 Tax Return Instructions or to find further information.

You will also find income tax returns and instructions at most libraries, post offices and banks between Jan. 1 and May 31.