FAQs - Individual Income Tax

Do I need to file an Ohio income tax return?

Yes, unless one or more of the following apply:

  • Your Ohio adjusted gross income (line 3) is less than $0.
  • The total of your senior citizen credit, lump sum distribution credit and joint filing credit (Ohio Schedule of Credits, lines 4,5 and 12) is equal to or exceeds your income tax liability (Ohio IT 1040, line 8c) and you are not liable for school district income tax.
  • Your exemption amount (Ohio IT 1040, line 4) is the same as or more than your Ohio adjusted gross income (line 3).

NOTE: If your federal adjusted gross income is greater than $12,950, the Department recommends that you file an Ohio IT 1040 or IT 10, even if you do not owe any tax, to avoid delinquency billings.

Background

Retirement, pension and annuity income are all taxable. The Ohio return provides a credit for retirement and pension income that is received on account of retirement. To qualify for this credit, the adjusted gross income less exemptions (Ohio IT 1040, line 5) must be less than $100,000. The credit is capped at $200.00 and is based upon the amount of the distribution reported on form 1099-R. The credit is not applicable for separation of employment, loans against the retirement plan, or rollovers.

Some senior citizens 65 years of age and older are entitled to an additional $50.00 tax credit. To qualify for this credit, the adjusted gross income less exemptions (Ohio IT 1040, line 5) must be less than $100,000. Also, certain social security income, railroad retirement income and annuities may be deductible on Ohio Schedule A. 

Interest and dividend income from obligations issued by the United States government or its possessions/territories are exempt from Ohio tax by law. Such obligations include U.S. savings bonds (Series E, EE, H or I), Treasury notes and bills, and Sallie Maes. Please see the Ohio Schedule A for this deduction.

Residency

For Ohio residents, retirement income, pension income and annuity income are taxable regardless of where received by the taxpayer. For example, a full year Ohio resident who spends part of the year in Ohio and part of the year in Florida and who receives a pension is liable for Ohio income tax on the entire amount of the pension received during the taxable year. This is true regardless of the location where the taxpayer worked in prior years to earn the pension.

For non-Ohio residents, retirement income, pension income and annuity income are not subject to Ohio income tax regardless of the location where the taxpayer received the income. For example, a full-year Indiana resident who spends part of the year in Ohio and part of the year in Indiana and who receives a pension is not liable for Ohio income tax on that income. This is true regardless of where the taxpayer worked in prior years to earn the pension.

Non-Ohio residents who had a presence in Ohio for no more than 20 days and generated no more than $10,000 in Ohio gross income should refer to this information release:

http://www.tax.ohio.gov/Portals/0/ohio_individual/individual/information_releases/PIT%202014-01%20Safe%20Harbor.pdf

Part-year Ohio residents are persons who changed their permanent residence from or to Ohio during the taxable year. A person whose residence is Ohio but who spends several months outside Ohio during the year is not a part-year resident but is a full-year Ohio resident. For part-year Ohio residents, retirement income, pension income and annuity income received while a resident of Ohio are taxable.

For more information:

• You may call us toll-free at 1-800-282-1780.

• You may also E-Mail Us your questions.

• Visit our Web site at www.tax.ohio.gov to obtain a copy of the current  IT1040 Tax Return Instructions or to find further information.