Ohio Business Income deduction and joint filing cr...
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poseypatch
Returning Member

Ohio Business Income deduction and joint filing credit

My spouse only has qualifying business income which is fully deductible; therefore it looks like we don't qualify for the joint filing credit this year.  Do I need to deduct all of his business income or can I allocate just enough so that he will have the $500 of qualifying income?  He really doesn't have that much business income and did not take any retirement income this year and if I only allocate a portion of his income for the deduction we would qualify for the joint filing credit which would end up giving us a larger refund.  Thanks!

6 Replies
AmyC
Employee Tax Expert

Ohio Business Income deduction and joint filing credit

The IRS expects you to take every deduction to which you are entitled.

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poseypatch
Returning Member

Ohio Business Income deduction and joint filing credit

I'm talking about the Ohio state tax, not Federal

timmar93
New Member

Ohio Business Income deduction and joint filing credit

Did you ever get an answer to this?  Because I think TurboTax is NOT considering which situation is better (Taking the business income deduction or the joint filing credit)

timmar93
New Member

Ohio Business Income deduction and joint filing credit

I also think you did not address the issue.   I think TurboTax is NOT considering which situation is better (Taking the business income deduction or the joint filing credit)

Hal_Al
Level 15

Ohio Business Income deduction and joint filing credit

Yes, you may reduce your Ohio business income deduction (BID), in order to claim the Joint filing credit (JFC).

 

But, TurboTax is not capable of making the decision for your or comparing options.  You have to decide the amount.  "Usually", you just need to end up with $500 profit. So use all but $500 for the  BID. But beware of the JFC income adjustments from Schedule A.  Review the JFC allocation worksheet. 

poseypatch
Returning Member

Ohio Business Income deduction and joint filing credit

I've already filed and unfortunately, did not get the Joint Filing Credit and don't want to file an amendment in case it triggers something.... I guess the state needs $$ more than I do (that's a JOKE).

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