The state tax commissioner is reminding Ohio small-business owners that they may be eligible for a recently enacted tax deduction.
In an alert issued on Jan. 21, Commissioner Joe Testa urged taxpayers to visit the Ohio Department of Taxation website to learn whether they’re eligible and how to file for a 50-percent write-off on their first $250,000 in business income from 2013.
Testa says a majority of small businesses and entrepreneurships structured as pass-through entities will be eligible for the deduction. It was enacted last year as part of a package of state tax changes included in Ohio’s two-year state budget.
The value of the deduction is capped at $125,000 of adjusted gross income reported on an Ohio personal income tax return.