Q. I have received long term disability benefits reported on a W2. This income is from a LTD policy which was paid for by my employer. Am i able to deduct this on my Ohio return?
A. Yes. Although your disability pay is taxable on the federal return, it is not taxable on the Ohio return.*
On the screen, "Here's the income that Ohio handles differently', scroll down to Miscellaneous / Disability benefits. Click Start or revisit.
*From the instructions, page 25:
Line 39 – Disability Benefits
Deduct disability benefits to the extent included in federal adjusted gross income. To determine if amounts are disability benefits, you should refer to the terms of the plan under which the benefits are paid.
You may not deduct:
●Temporary wage continuation payments;
●Retirement benefits that converted from disability benefits upon reaching a minimum retirement age;
OR
●Payments for temporary illnesses or injuries (such as sick pay provided by an employer or third party).
See R.C. 5747.01(A)(4) and Ohio Adm. Code 5703-7-08.
