Why is my Ohio joint filing credit missing?

[SabrinaD2]

Your Ohio joint filing credit might be missing for a few reasons:

1. Qualifying Income: Both you and your spouse must each have at least $500 of qualifying income. Qualifying income includes wages and retirement income but excludes interest, dividends, rental income, and capital gains
2. Income Allocation: Ensure that income items (like W-2 forms) are correctly assigned to each spouse
3. Deductions and Adjustments: Certain deductions or adjustments, such as excess medical expenses or IRA deductions, might reduce your qualifying income below the $500 threshold
4. .The joint filing credit calculates using qualifying income, which excludes income from interest, dividends and distributions, royalties, rents, capital gains, and state or municipal income tax refunds.
5. The maximum credit is $650. The credit is a percentage of the tax after all credits are claimed other than the resident, nonresident, part-year resident, and business credits.
6. Income Limits: The credit is adjusted downward if your Ohio adjusted gross income (OAGI) exceeds $75,000,

For more details, you can check out these resources:

• Ohio Joint Filing Credit Overview
• Additional Explanation From Ohio

[ktzoeller]

Do these count as qualifying income:

Spouse 1

- retiree life insurance, with a W2 supplied

Spouse 2

- deferred income paid after retirement - W2

- company pension - 1099R 

- Social Security - 1099SM

All are above $500

Thank you.

[MarilynG1]

If Spouse 1's income is not reported in Box 1 of the W-2, it may not count as qualifying income.  Does your Ohio AGI exceed 75K?

It's possible that you actually qualify for this credit, but don't need it.

The Joint Filing Credit is a non-refundable credit, meaning that it can only offset any tax that you might owe.  To start your taxable income computation, the Ohio return starts with your federal return's adjusted gross income, then makes state adjustments and exemptions, among other computations, so it's possible you have no Ohio tax liability.  If you don't have any state tax liability on Form IT 1040, line 8c, there's no tax to offset. 

If you feel you qualify for the Ohio Joint Filing Credit and are not receiving it, let us know and we'll try to help.

Here's how you can Contact TurboTax Support for more help. 

@ktzoeller 

[Hal_Al · Accepted solution]

All of those count except social security  (social security income is deducted on the OH return).

To qualify for this credit, you and your spouse must each have at least $500 of qualifying income and jointly file your return. "Qualifying income" is any amount included in Ohio adjusted gross income, other than the following:
●Interest;
●Dividends and distributions;
●Capital gains; AND
●Rents and royalties

Then, any Ohio schedule A deductions (like excess  medical expenses) or Federal adjustments (the most common being an IRA deduction) must be subtracted from the qualifying income. If either spouse has less than $500 net, you will not qualify for the Joint filing credit. Take a look at the allocation form that TT does, it should show these adjustments.

In the "forms mode", look at the Joint Filing Credit Allocation Worksheet.

Did you have any of the following:

-medical expenses exceeding 7-1/2% of AGI

-IRA deductions

-student loan interest deduction

-1/2 self employment tax deduction

-educator expense deduction

-alimony deduction

-out of state military pay 

-any other adjustments on Ohio sch A

-Small Business Deduction

If so, and those items were deducted from your qualifying income, would that income be reduced to less than $500?

[ktzoeller]

Thanks for your response!

Per above, Spouse 1 had Sch A adjustments for Health Ins. premiums for $10k, which is more than the qualifying income for retiree Life Ins. on the W2.  I assume that would totally negate the qualifying income, hence no joint filing credit. 

Best regards.