14068: OH - Retirement Income Credit

In order for the Ohio Retirement Income Credit to figure automatically in the software, one or more of following must be true: 

• Either spouse is 65 or older.
• "Retired" is entered as the occupation on federal screen 1.
• The check box Retired for calculation of retirement credit is marked on Ohio screen 3 Schedule of Credits.

In addition, the taxpayer and/or spouse must qualify to claim the Retirement Income Credit for the credit to be calculated. According to the OH IT 1040 Instructions, all of the following criteria must be met:

• Your modified adjusted gross income less exemptions is less than $100,000;  
• You must have received income from a pension, profit-sharing, or retirement plan (such as traditional IRAs or 401(k) plans);
• This income is included in your Ohio adjusted gross income; 
• This income was received on account of retirement; AND
• You have not previously taken the Ohio lump sum retirement credit.

If the taxpayer or spouse meets all of the requirements, the Retirement Income Credit will calculate and carry to OHSCHCR page 1, line 2. The maximum credit per return is $200. 

Note: Individuals who have previously taken the OH Lump Sum Retirement Income Credit, cannot take the retirement income credit this year, or in any future year, even if they are otherwise eligible. The check box Previously taken lump sum retirement income credit is located on OH screen 3. When this is selected, the retirement credit will not be calculated. This check box selection updates to future years.