Ohio § 5747.055

§ 5747.055.

(A) As used in this section “ retirement income ” means retirement benefits, annuities, or distributions that are made from or pursuant

to a pension, retirement, or profit-sharing plan and that: (1) In the case of an individual, are received by the individual on account of retirement

and are included in the individual's adjusted gross income; (2) In the case of an estate, are payable to the estate for the benefit of the surviving

spouse of the decedent and are included in the estate's taxable income. (B) A credit shall be allowed against a taxpayer's aggregate tax liability under section 5747.02 of the Revised Code for taxpayers who received retirement income during the taxable year and whose modified

adjusted gross income for the taxable year, less applicable exemptions under section 5747.025 of the Revised Code , as shown on an individual or joint annual return is less than one hundred thousand

dollars.  Only one such credit shall be allowed for each return, and the amount of the credit

shall be computed in accordance with the following schedule: AMOUNT OF RETIREMENT INCOME RECEIVED CREDIT FOR THE DURING THE TAXABLE YEAR TAXABLE YEAR $500 or less $ 0 Over $500 but not more than $1,500 $ 25 Over $1,500 but not more than $3,000 $ 50 Over $3,000 but not more than $5,000 $ 80 Over $5,000 but not more than $8,000 $130 Over $8,000 $200 (C) A taxpayer who received a lump-sum distribution from a pension, retirement, or profit-sharing

plan in the taxable year and whose modified adjusted gross income for the taxable

year, less applicable exemptions under section 5747.025 of the Revised Code , as shown on an individual or joint annual return is less than one hundred thousand

dollars, may elect to receive a credit under this division in lieu of the credit allowed

under division (B) of this section.  A taxpayer making such an election is not entitled to the credit authorized under

this division or division (B) of this section in subsequent taxable years.  A taxpayer electing the credit under this division shall receive a credit for the

taxable year against the taxpayer's aggregate tax liability under section 5747.02 of the Revised Code computed as follows: (1) Divide the amount of retirement income received during the taxable year by the taxpayer's

expected remaining life on the last day of the taxable year, as shown by annuity tables

issued under the provisions of the Internal Revenue Code and in effect for the calendar

year that includes the last day of the taxable year; (2) Using the quotient thus obtained as the amount of retirement income received during

the taxable year, compute the credit for the taxable year in accordance with division

(B) of this section; (3) Multiply the credit thus obtained by the taxpayer's expected remaining life.  The product thus obtained shall be the credit under this division for the taxable

year. (D) If the credit under division (C) or (E) of this section exceeds the taxpayer's aggregate

tax liability under section 5747.02 of the Revised Code for the taxable year after allowing for any other credit that precedes that credit

in the order required under section 5747.98 of the Revised Code , the taxpayer may elect to receive a credit for each subsequent taxable year.  The amount of the credit for each such year shall be computed as follows: (1) Determine the amount by which the unused credit elected under division (C) or (E)

of this section exceeded the total tax due for the taxable year after allowing for

any preceding credit in the required order; (2) Divide the amount of such excess by one year less than the taxpayer's expected remaining

life on the last day of the taxable year of the distribution for which the credit

was allowed under division (C) or (E) of this section.  The quotient thus obtained shall be the credit for each subsequent year. (E) If subsequent to the receipt of a lump-sum distribution and an election under division

(C) of this section an individual receives another lump-sum distribution within one

taxable year, and the taxpayer's modified adjusted gross income for the taxable year,

less applicable exemptions under section 5747.025 of the Revised Code , as shown on an individual or joint annual return is less than one hundred thousand

dollars, the taxpayer may elect to receive a credit for that taxable year.  The credit shall equal the lesser of: (1) A credit computed in the manner prescribed in division (C) of this section; (2) The amount of credit, if any, to which the taxpayer would otherwise be entitled for

the taxable year under division (D) of this section times the taxpayer's expected

remaining life on the last day of the taxable year.  A taxpayer who elects to receive a credit under this division is not entitled to

a credit under this division or division (B) or (C) of this section for any subsequent

year except as provided in division (D) of this section. (F) A credit equal to fifty dollars for each return required to be filed under section 5747.08 of the Revised Code shall be allowed against a taxpayer's aggregate tax liability under section 5747.02 of the Revised Code for taxpayers sixty-five years of age or older during the taxable year whose modified

adjusted gross income, less applicable exemptions under section 5747.025 of the Revised Code , as shown on an individual or joint annual return is less than one hundred thousand

dollars for that taxable year. (G) A taxpayer sixty-five years of age or older during the taxable year who has received

a lump-sum distribution from a pension, retirement, or profit-sharing plan in the

taxable year, and whose modified adjusted gross income, less applicable exemptions

under section 5747.025 of the Revised Code , as shown on an individual or joint annual return is less than one hundred thousand

dollars for that taxable year may elect to receive a credit under this division in

lieu of the credit to which the taxpayer is entitled under division (F) of this section.  A taxpayer making such an election shall receive a credit for the taxable year against

the taxpayer's aggregate tax liability under section 5747.02 of the Revised Code equal to fifty dollars times the taxpayer's expected remaining life as shown by annuity

tables issued under the Internal Revenue Code and in effect for the calendar year

that includes the last day of the taxable year.  A taxpayer making an election under this division is not entitled to the credit

authorized under this division or division (F) of this section in subsequent taxable

years. (H) The credits allowed by this section shall be claimed in the order required under section 5747.98 of the Revised Code .  The tax commissioner may require a taxpayer to furnish any information necessary

to support a claim for credit under this section, and no credit shall be allowed unless

such information is provided.