Ohio Financial Planning Newsroom

Retirement Tax Credit In Ohio

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. The credit is capped at $200.00 and is based upon the amount of the distribution reported on the 1099R. The credit is not applicable for separation of employment, loans against the retirement plan or rollovers.

Senior citizens 65 years of age and older are entitled to an additional $50.00 tax credit. Also, certain social security income, railroad retirement income, annuities and interest from Series "E" and Series "H" bonds may be deductible. Railroad unemployment compensation is taxable.

For Ohio residents, retirement income, pension income and annuity income are taxable regardless of where received by the taxpayer. For example, an 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 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 where received by the taxpayer. For example, an 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.

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. 

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