Q 2. Can I deduct business expense through Ohio State taxes?
My previous answer assumed poster is a w-2 employee. If you are a self employed person, filing a federal Schedule C, it works like this: You deduct your business expenses on federal Schedule C. Your net profit or loss transfers to the OH state return. You do not deduct any additional business expenses on your OH return. BUT, OH allows a Business Income Deduction (BID) of up to $250,000. So, you do not pay any OH tax on your self Employed income.
