Issue with 1015 Ohio income tax

[Anita01]

Can you give us some information about the issue?  Did you receive a notice from the state?  Is the notice correct?

[richardlbouman]

Yes. I received Notice from State. I called Turbo to find out if notice is correct.

[richardlbouman]

State Claims Form LS WKS Section II line 2 yes response is incorrect

[Anita01]

And what happened when you called?  What would you like us to do here in the community?

[Hal_Al · Accepted solution]

The Ohio Dept. of Taxation is saying you don't qualify for the lump sum retirement credit. They are probably right.  Most people, who get a 1099-R for a lump sum  are not eligible. For example, leaving your employment and cashing out your 401k does not qualify. IRA distributions are not eligible.

 There are two separate OHIO lump sum credits. One, the "Lump Sum Distribution Credit is only for people over 64 and you must have taken out everything in the company plan  and you must have left the company.

 The other, the Lump Sum Retirement Credit, is for any age but you must have actually retired from your company, and taken your entire account as a lump sum.

 See page 27 at http://www.tax.ohio.gov/portals/0/forms/ohio_individual/individual/2015/PIT_IT1040_Booklet.pdf

 Or for the detailed nitty gritty:

 http://www.tax.ohio.gov/portals/0/forms/ohio_individual/generic/PIT_LumpSum_FI.pdf