Ohio BUS credit and SD-100

[Janitor Bob]

OH preparers help me please!  Client's only income is schedule C.  Not taxable on the Ohio return due to the nice Ohio Business Income Credit....but does that mean it is also not taxable on the OH SD-100?...Earned Income only school district asks for income from Sch C that is also included in Ohio taxable income...but Ohio taxable income is zero....

[Janitor Bob]

Disregard...I found it...you have to add back the credit

 

[Janitor Bob]

Disregard my disregard...The Business credit add-back is only for traditional income-based districts...since mine is earned only, I'm still confused on wether or not to include the Sch C income on the SD-100

 

[Jack from Ohio]

2 hours ago, Janitor Bob said:

Disregard my disregard...The Business credit add-back is only for traditional income-based districts...since mine is earned only, I'm still confused on wether or not to include the Sch C income on the SD-100

 

Include the income on the SD100. Sch C income is considered earned income.

[Janitor Bob]

On 3/14/2017 at 0:41 AM, Jack from Ohio said:

Include the income on the SD100. Sch C income is considered earned income.

to the extent included in Ohio taxable income...which is zero in this case because of the BUS credit.  The Ohio web site states specifically that for earned income only school districts, there is no requirement for add back of the BUS credit like there is with traditional base school districts.  For traditional, there is a line (line 20, I think) to add back that BUS credit.

[Jack from Ohio]

SD adds back all income that the BUS credit takes away.  Schedule C is part of the BUS credit.

Schedule C income is always included in "earned income only" school districts.