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 the Business Income Deduction (BID)?

For tax years 2016 and forward, the first $250,000 of business income earned by taxpayers filing “Single” or “Married filing jointly,” and included in their federal adjusted gross income, is 100% deductible. For taxpayers who file “Married filing separately,” the first $125,000 of business income included in their federal adjusted gross income is 100% deductible.

For tax year 2015, 75% of the first $250,000 of business income earned by taxpayers who filed “Single” or “Married filing jointly,” and included in their federal adjusted gross income, was deductible. For taxpayers who filed “Married filing separately,” 75% of the first $125,000 of business income included in their federal adjusted gross income was deductible.

See R.C. 5747.01(A)(31).

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