FAQs - Pass Through Entity

Is the PTE tax deductible for Ohio income and corporation franchise tax purposes?

Ohio law expressly states that if such PTE tax is deducted either for individuals/estate/trust income tax purposes or for corporation franchise tax purposes, such amounts must be added to FAGI or "Line 28” (IRS form 1120) income, respectively. This add back is applicable only to C corporations not subject to the franchise tax phase out.