- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I have a 1099-misc i received as an independent contractor. Ohio tax form asked how much was business income? Do I put in the total amount on the 1099-misc?
Ohio tax form asked about my business entities. I earned this income as a technical writer and an independent contractor. The page is titled 'How much of this amount qualifies as business income?' If I earned it as a technical writer, is it considered a business income? If I enter the entire amount, then the next page says the total amount (what I earned) will be deducted from my taxable income. I don't know what I should put in there. Thanks. Tom
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Yes, Ohio allows the first $250,000 of business income earned by taxpayers filing “Single” or “Married filing jointly,” and included in federal adjusted gross income, to be 100% deductible. For taxpayers who file “Married filing separately,” the first $125,000 of business income included in federal adjusted gross income is 100% deductible. This is commonly referred to as Ohio’s Business Income Deduction (BID). Any remaining business income above these thresholds is then taxed at a flat 3% rate. Only business income earned by a sole proprietorship or a pass-through entity generally qualifies for the deduction.
See this link for more information about Ohio's Business Income Deduction: https://www.tax.ohio.gov/Individual/BusinessIncomeDeduction.aspx
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Yes, you put total amount of your net business income. If you did not deduct any business expenses, from the 1099-misc amount; then that is the amount of your small business deduction (SBD).
Essentially, Ohio does not tax small business income, under $250,000.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
I was wondering if you or someone can follow up on this message, as I'm in a similar situation. I am an independent contractor with my income reported on a 1099-misc, but I do not have an LLC or have a business registered in any way. I'm just me. The Ohio tax forms require me to report the 'entity' ie business name of the business I run. Do I just put my name there or 'not applicable' or 'independent contractor'? Or by not having a business that I push my income through does this make me ineligible to claim the small business deduction? (until/unless I register a business that I pass my income through)
Thanks!
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
You just put your name there as the business name, the same as you do on federal Schedule C. The fact that you have a 1099-Misc, with income in box 7 and report that income on federal Schedule C makes you eligible for the Ohio BID (business income deduction)