Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

What is changing?

For tax years 2015 and forward, business income from sole proprietorships and pass-through entities included on a taxpayer’s individual income tax return will be taxed separately from nonbusiness income.

  •  2015 tax year filing - This business income will be reduced by a new 75% Business Income Deduction (subject to a $187,500 max. deduction) and the remaining taxable business income will be taxed at a graduated rate that will not exceed 3%.
  •  2016 tax year filing - This business income will be reduced by the 100% Business Income Deduction (subject to a $250,000 max. deduction) and the remaining taxable business income will be taxed at a flat 3%.
  • 2017 tax year filing - This business income will be reduced by the 100% Business Income Deduction (subject to a $250,000 max. deduction) and the remaining taxable business income will be taxed at a flat 3%.

The Business Income Deduction and the tax on the remaining taxable business income are calculated using form IT BUS.

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