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.

How is unemployment compensation taxed in Ohio?

Unemployment compensation is not “compensation” under Ohio law. Thus, it is allocated differently than compensation.

Residents: Generally, any unemployment compensation included in federal adjusted gross income is taxable to Ohio. However, if another state requires the taxpayer to pay tax on unemployment compensation, the taxpayer may be eligible to claim Ohio’s resident credit.

Part-year residents: A taxpayer who permanently moved into or out of Ohio during the tax year is a part-year resident. Part-year residents are entitled to the nonresident credit for any portion of unemployment compensation paid or accrued while they were a resident of another state.

Part-year residents are also eligible for the resident credit on any portion of unemployment compensation paid or accrued while a resident of Ohio if they were subject to and paid tax on that income in another state.

Nonresidents: Generally, any unemployment compensation received while a nonresident of Ohio is taxable to Ohio if the unemployment compensation was paid or accrued while the taxpayer was a resident of Ohio.

See R.C. 5747.20(B)(6).