Which non-refundable Credit?
The total non refundable credits shows on line 33 of the Ohio Schedule of Credits. The most common credits are:
- -Retirement Income credit (line 2 of the schedule)
- -Sr citizen credit (line 4)
- -Day care credit (line 6)
- -Exemption credit (line 9 )
- -Joint filing credit (JFC) (line 12 )
- -Earned Income credit (line 13)
If Ohio Dept. of Taxation (ODT) is denying the JFC; it is usually because both spouses did not have a W-2. You need to send proof that you both had qualifying income. In the "forms mode", look at the Joint Filing Credit Allocation Worksheet (abbreviated Joint Alloc Wks on the list of forms). This is where your net qualifying income is calculated. It shows on line 4. If either of you is less than $500 on line 4, you do not qualify. ODT will usually accept a copy of this worksheet as proof that you qualify. You should also include a copy of your 1099-R, if you have retirement income. Social security benefits is NOT qualifying income.
New, starting in 2016, is the 100% Small business Deduction (SBD) (also known as the BID - Business Income Deduction). If one of the spouses is self employed, all of his/her qualifying income for the Joint Filing Credit (JFC) is wiped out by the SBD. But, you are not required to take the full 100% SBD. So, you can consider reducing the amount of SBD you claim, so that you have at least $500 of earned income to claim the JFC.
