Ohio Tax Department Issues Guidance on Claiming State Resident Credit for PTE SALT Cap Taxes

The Ohio Department of Taxation Oct. 12 issued guidance on claiming the Ohio Resident Credit for pass-through entity (PTE) SALT cap taxes imposed by other states for tax year 2022, for individual income tax purposes. The guidance provides that in accordance with H.B. 33, an individual investor’s proportionate share of taxes paid by a PTE that are related to SALT cap taxes must be added to federal adjusted gross income (AGI) as part of the calculation of Ohio AGI. The guidance also provides that if the income on which the tax is based qualifies as business income under state law, ...