Hal_Al
Level 15

State tax filing

@jrwhitten  The most likely explanation is user error.  As explained above:

The Ohio Small Business deduction (Form IT BUS) is mostly manual, in TurboTax (TT). In the Ohio interview, you will be asked if you qualify for the Small Business deduction (SBD). When you answer yes, it will take you to a series of screens where YOU will fill in the amounts. For most people, it's one single entry for your business income (usually from the federal Schedule C).

 

I would go back into the TT interview and verify what I entered.  Unfortunately, TT also asks if any of your interest, dividends and capital gains qualify for the SBD / BID (Business income deduction).  They seldom do. You may have accidently made an entry there.  Rental income also qualifies for the BID, but must be adjusted for rental losses. 

 

The Ohio Dept. of Taxation (ODT) has been clarifying the BID rules, over the few years it's been in existence.  In was easy to make mistakes in the first few years.