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.

If I report my wages on federal Schedule C, are they eligible for the Business Income Deduction?

If you are an “employee” for federal income tax purposes, any amount paid to you by your employer is considered compensation under Ohio law. “Employee” includes statutory employees and common law employees, even if they report those wages on federal Schedule C.

Compensation is not business income and therefore does not qualify for the Business Income Deduction. See R.C. 5747.01(C) and (D).