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.

Who is eligible to claim the Business Income Deduction?

Any individual with any business income is eligible to claim the deduction, regardless of residency status or where the income is earned. Business income from pass-through entities qualifies for the deduction regardless of the individual’s ownership percentage.

The deduction can only be claimed by filing an individual income tax return (Ohio IT 1040), and completing the Ohio Schedule IT BUS. Entities are not eligible to claim the Business Income Deduction (i.e. on the IT 1140, IT 4708, or IT 1041).

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