How do I apply Ohio lead tax credit on my tax form?

[carmella]

Received tax credit for having lead abated from residence….. how do I use it on tax form?

[MayaD]

The Ohio Lead Abatement Tax Credit is a nonrefundable credit that is issued against a taxpayer’s state tax liability. In order to be eligible to receive this credit, the taxpayer must have incurred lead abatement costs, associated with an eligible dwelling they own, on or after the taxable year beginning January 1, 2020.

Ohio Department of Health

To claim the credit,:

1. Open your return.
2. Select State Taxes.
3. Click continue next to Ohio return. Continue until you get to the screen Take a look at Ohio credits and taxes
4. Scroll down to Business and investment credits
5. Click Start/ Revisit next to Non refundable business credits and carryovers
6. On the following screen, inside the box, scroll down to Lead Abatement Credit Smartsheet.

[CKCK78]

Hello,

When I am at step 4 of the instructions described by @MayaD, at the Business and investment credits section, I do not see the "Non refundable business credits and carryovers" option. I only see "Work-Based Learning Experience Credit" (as shown in the picture) is there somewhere else I should look for the "Non refundable business credits and carryovers" option?

Thanks.

[JamesG1]

I am able to follow the instructions of @MayaD.  

In TurboTax Online Premium, I am able to access the screen Take a look at Ohio credits and taxes and the option for Nonrefundable business credits and carryovers.

Do you report a self-employment activity in your tax return?  Do you report an IRS form K-1 in your tax return?

What version of TurboTax are you using?  Are you using the Online version or the Desktop version?

@CKCK78 

[CKCK78]

Hello @JamesG1, thank you for the quick reply. I am using TurboTax Online Premium.

I do not report any self-employment activity or the K-1 form in my return. 

The lead abatement performed was on my personal residence. 

[JamesG1]

If this is not a business- related tax benefit, are you reporting as a full-year resident with an Ohio address?

TurboTax Online Premium will generate the credit.  See here.

Information about the Ohio Lead Abatement Tax Credit Program may be found here.

@CKCK78 

[CKCK78]

@JamesG1, correct I am reporting as a full year resident with an Ohio address.  

Also I do have the approved tax credit certificate from the Ohio Department of Health.

Just need to know how to add the credit within TurboTax Online Premium and attach the certificate. 

[Hal_Al]

To claim the credit,:

1. Open your return.
2. Select State Taxes.
3. Click continue next to Ohio return. Continue until you get to the screen Take a look at Ohio credits and taxes
4. Scroll down to Business and investment credits
5. Click Start/ Revisit next to Non refundable business credits and carryovers
6. On the following screen, inside the box, scroll down to Lead Abatement Credit Smartsheet.

After entering your SSN, certificate number and Approved amount, note that there is a 2nd line on the worksheet, "Enter proportionate share here". Re-enter the approved amount in the box "(a) 2023 amount" 

[CKCK78]

@Hal_Al, thank you for the response. I am having a problem with step 5 you described. Please see the attached picture, after going to state return, Ohio credits, and then Business and investment credits section, there is not an option for "Non refundable business credits and carryovers". 

[JamesG1]

Do you have a balance due on your Ohio state income tax return?  The nonrefundable business credits may reduce tax owed all the way to zero, but they cannot generate a tax refund.

In my test tax return, if I generate $0 line 8c Income tax liability, I lose the nonrefundable lead abatement tax credit.

I do not qualify for the lead abatement tax credit.

Do you qualify for the lead abatement tax credit by having a tax balance on line 8c?  Perhaps, you do not qualify for the credit, so the software does not offer the credit to you.

The Learn More hyperlink in the Ohio state income tax return states:

Nonrefundable business credits may reduce the tax you owe, all the way to zero, but they cannot generate a tax refund.

For certain nonrefundable credits, the state of Ohio allows you to "carryover" to future years the credit amount that you didn't use.

Two examples of credits with carryovers are the credit for investing in an Ohio small business and the technology investment credit.


Here are nonrefundable business credits you can claim if you're eligible:

 - Nonrefundable Job Retention Credit
 - New Employees in an Enterprise Zone Credit
 - Beginning Farmers Financial Management Program Credit
 - Welcome Home Ohio Credit
 - Sale/Rental of Agricultural Assets to Beginning Farmers Credit
 - Grape Production Credit
 - InvestOhio Credit
 - Lead Abatement Credit
 - Opportunity Zone Investment Credit
 - Technology Investment Credit
 - Enterprise Zone Day Care and Training Credit
 - Research and Development Credit
 - Nonrefundable Ohio Historic Preservation Credit
 - Low-Income Housing Credit
 - Affordable Single-Family Housing Credit

@CKCK78 
 

[Hal_Al]

@MayaD  @JamesG1 

WOW! I've been using TT for 20 years and have never noticed this before.  I have desktop Deluxe.  On my joint return, when I open the Ohio program, I get the  Ohio Credits and taxes screen that MayaD describes above (with the Non refundable business credits and carryovers option to choose).  When I open my son's less complicated return, I get the screen that @CKCK78  describes and shows, so the Non refundable business credits and carryovers option, isn't on the list. 

What CKCK78 needs is instructions on how to get that screen. I can't figure it out.