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 impact of the federal Qualified Business Income Deduction (QBID) on my Ohio income tax return?

The federal QBID has no impact on your Ohio return. First available for tax year 2018, the federal QBID was created as part of the Tax Cuts and Jobs Act (TCJA). It is taken after the computation of federal adjusted gross income (FAGI). Since the Ohio income tax return starts with FAGI, it does not factor into your Ohio income tax calculation.

Furthermore, the federal QBID is separate from Ohio’s Business Income Deduction. Thus, you cannot simply claim the federal QBID as your Ohio Business Income Deduction. Instead, you must continue to complete the Ohio Schedule IT BUS.

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