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.

A taxpayer is a "statutory employee" for federal purposes receiving a form W-2 from a Limited Liability Company (LLC) that they do not own. They report this W-2 income on federal Schedule C, but do not pay self-employment tax. Can this income be included on the IT BUS?

Regardless of whether a taxpayer is considered to be a "statutory employee" for federal employment tax purposes, if a taxpayer is a "common law employee" not required to pay federal self-employment tax, their income is considered to be compensation. Compensation is not business income and therefore does not qualify for the Business Income Deduction and should not be included on form IT BUS. See O.R.C. 5747.01(A)(31), 5747.01(C), 5747.01(D)

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