Frequently Asked Questions

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

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Provide an example of a completed IT 4708 which sets forth an amount for a pass-through entity credit as part of the Total refundable business credits.

  • PTE #1 is equally owned (50%) by PTE A and PTE B.
  • All the investors in PTE A and PTE B are full-year nonresident individuals, and they have no other Ohio-sourced income.
  • All three partnerships are operating partnerships, have Ohio apportionment factors of 1.000000 and have no allocable income.
  • PTE #1’s profit apportioned to Ohio is $80,000.
  • PTE A’s profit apportioned to Ohio is $160,000 (not including A’s share of #1’s profit).
  • PTE B’s profit apportioned to Ohio is $260,000 (not including B’s share of #1’s profit).
  • Each of the three partnerships files Ohio form IT 4708 and pays the tax shown thereon.

Form IT 4708 Computation---PTE #1

 

Income apportioned to Ohio

$80,000

Income allocated to Ohio

0

Ohio Taxable Income

$80,000

Times: tax rate for year 2018

x .04997

Tax before credit(s)

$3,998

Less: “Total refundable business credits" (from Schedule V)

(0)

Tax after refundable credits

$3,998

   

Form IT 4708 Computation---PTE A

 

Income apportioned to Ohio ($160K + ($80K x 50%))

$200,000

Income allocated to Ohio

0

Ohio taxable income

$200,000

Times: tax rate for year 2018

x .04997

Tax before credit(s)

$9,994

Less: “Total refundable business credits"(from Schedule V 50% X $3,998)

($1,999)

Tax after refundable credits

$7,995

   

Form IT 4708 Computation---PTE B

 

Income apportioned to Ohio ($260K + ($80K x 50%))

$300,000

Income allocated to Ohio

0

Ohio taxable income (50% X $3,998)

$300,000

Times: tax rate for year 2018

x .04997

Tax before credit(s)

$14,991

Less: “Total refundable business credits"(from Schedule V 50% X $3,998)

($1,999)

Tax after refundable credits

$12,992

Notes:

(1) Because PTE A and PTE B equally own PTE #1, PTE A and PTE B must each include in income one-half of PTE #1's profit.

(2) PTE A and PTE B can each claim one-half of the form IT 4708 tax paid by PTE #1 as a credit on their respective returns..

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