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New Member
posted Feb 21, 2024 8:32:23 AM

Question on my State of Ohio Tax Return with regards to Nonqualified Retirement Income. Is my IRA Distribution amount considered Nonqualified Retirement Income?

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1 Replies
Level 15
Feb 21, 2024 11:16:07 AM

It's possible.  Nonqualified retirement income, in this context, would be any retirement income that doesn't qualify for Ohio's Retirement Income Credit.

 

To qualify for the Retirement Income Credit, according to Ohio Schedule of Credits in the IT 1040/SD 100 Instructions:

[A]ll of the following must be true:

  • Your modified adjusted gross income less exemptions is less than $100,000; 
  • You must have received income from a pension, profit-sharing, or retirement plan (such as traditional IRAs or 401(k) plans);
  • This income was received on account of retirement;
  • This income is included in your Ohio adjusted gross income; AND
  • You have not previously taken the Ohio lump sum retirement credit.

So, if your IRA distribution would be eligible for the credit, it wouldn't be nonqualified.