Income - Individual Credits (Education, Displaced Workers & Adoption)

For FAQs on the retirement income, lump sum retirement and lump sum distribution credits, see the " Income-Retirement Income " topic. First, you must be a “displaced worker” by meeting both of the following: You lost or left a job due to the closing or moving of the job location or the abolishment of the position or shift; AND You have not found a new job at which they work more than 20 hours a week. Then, as a displaced worker, you must have paid for "job training" to enhance your ability to get a job. For a list of job training expenses that qualify for this credit, see the FAQ "What amounts qualify as 'job training' expenses for purposes of the Displaced Worker Training Credit?" Example : Cathy lost her job as a server due to the closing of the restaurant on March 15th. She enrolled in college on April 15th and paid $400 for tuition. Cathy got a new full-time job on June 30th but continued attending college. She enrolled in classes for the next semester on a August 15th and paid another $400 for tuition. Cathy is a "displaced worker" from March 15th to June 30th. Therefore, the $400 she paid in April qualified for the credit because she was a displaced worker at the time she paid for job training. However, the $400 she paid in August does not qualify because she was no longer a displaced worker at that time. See R.C. 5747.27. Amounts paid for job training or education that improves your ability to perform a new job after you have lost your previous job qualify as “job training” for purposes of this credit. These amounts generally include: College tuition and fees; Vocational training; AND Course materials such as books and software that are required as part of a course or training. Expenses that generally do not qualify as “job training” are those that are not directly related to the learning or improvement of skills used in a job, such as: Computer purchases and upgrades; Amounts paid for meals and transportation while attending job training; Professional organization fees/dues; Job placement or career planning services (resume workshops, interview critiques, skills assessments, etc.); Certification or licensure expenses (tests, fees, continuing education courses, etc.); AND Any amount paid for job training while the individual is not a displaced worker (see the FAQ, “How do I qualify for the Displaced Worker Training Credit”). See R.C. 5747.27. The credit equals the lesser of $500 or 50% of the amount you paid: For “job training”; While you were a displaced worker (see the FAQ, “How do I qualify for the Displaced Worker Training Credit?”); During the 12-month period immediately following the loss or leaving of your job. You may not include any amounts that were reimbursed to you or paid by another for your job training. If the 12-month period extends over two tax years and you pay for job training in both years, you can claim the credit in each tax year. However, your maximum credit for both tax years combined is $500. The Department of Taxation provides a worksheet to assist in the calculation of the credit that can be found in the “Worksheets” section of the IT 1040 and SD 100 Instructions. For a list of job training expenses that qualify for this credit, see the FAQ “What amounts qualify as ‘job training’ expenses for purposes of the Displaced Worker Training Credit?”. See R.C. 5747.27. To show that you qualify for the credit, you should include all of the following with your return: A completed copy of the Displaced Worker Training Credit worksheet (available in the “Worksheets” section of the IT 1040 and SD 100 Instructions); Proof of cost (1098-T or statement of account from the institution providing the training); Proof of payment (copy of a receipt from the institution, copy of the front and back of a cleared check, a credit card or loan statement showing disbursement to the institution, etc., showing you paid the training expenses); AND Proof that you qualify as a “displaced worker” (see the FAQ, “How do I qualify for the Displaced Worker Training Credit?”) such as: Notices from your employer informing you of the end of your job or shift; A letter from your former employer (including the employer’s name and address) reflecting the reason for separation and last date of employment; If you are unable to obtain a letter, you can provide a detailed statement regarding the job loss which includes all of the above information, as well as a copy of your unemployment determination notification, if available; OR Any other documentation you have that shows that you meet the definition of “displaced worker.” If you do not provide this information with your return, you may receive a notice from the Department of Taxation requesting this information. You should respond to the notice in writing by the date listed on the notice. Failure to provide the requested information within the timeframe listed on the notice may result in the denial of the credit. A variance notice will be issued to you that may result in a bill. You should respond in writing by the due date shown on the notice. Your response must include proof of your displacement, proof of training to enhance your ability to obtain a new job, proof of your out-of-pocket payment(s) for the job training and proof of how you calculated the displaced worker credit. You can prove these by providing: A detailed written narrative explaining the job loss, An employer letter reflecting the former employer closed or moved or your position or shift was abolished. The letter should include the former employer's name and address, reason for separation and last date of employment*, Proof of training (1098-T or statement of account from the institution providing the training), Proof of payment for training (cashed copy of payment checks, financial institution statements, or a loan statement showing disbursement of the training institution, etc.), Documentation to support you work no more than 20 hours per week at a new job (Ex: W2s, 1099s, etc.), and A completed displaced worker training credit worksheet . *If you are unable to provide an employer letter, provide an unemployment determination notice. You may submit your response using one of the following options: eServices Document Upload via OH|TAX account Login or create an OH|TAX eServices account. Click "Additional Services", then click Respond to a letter or notice under the "Letters and Notices" panel Select the specific notice you are responding to eServices Document Upload via Guest Upload Provide the Letter ID and some identifying information to respond without an OH|TAX eServices account. Mail : Ohio Department of Taxation Personal and School District Income Tax PO Box 182847 Columbus, OH 43218-2847 Common Reasons for a denial of the DWC (list not all inclusive): You left your job voluntarily or were terminated. You were temporarily out of work (e.g. due to COVID-19) but your position or shift was not abolished nor did your job location move or close. You're a statutory employee/independent contractor or a seasonal/temporary hire. You obtained a new job during the tax year and work more than 20 hours a week. You were reimbursed for claimed expenses by scholarship, grant, tuition reimbursement, etc. Your job training expenses were not paid for during the twelve-month period immediately following the loss of leaving of your job. You claim expenses that do not qualify for the credit such as: Computer purchases and upgrades Amounts paid for meals and transportation while attending job training Professional organization fees/dues Job placement or career planning services (resume workshops, interview critiques, skills assessments, etc.) Certification or licensure expenses (tests, fees, continuing education courses, etc.) Any amount paid for job training while you are not a displaced worker To qualify for this credit, you must pay for "educational expenses" for your qualifying student who is home schooled in Ohio. For tax year 2025 and forward: This nonrefundable credit equals the lesser of $250 per qualifying student or the amount you paid for educational expenses. For tax year 2024 and prior: This nonrefundable credit equals the lesser of $250 per return or the amount you paid for educational expenses. Important: Only expenses for students who are exempt from compulsory attendance law for the purpose of home education qualify for this credit. See the FAQ "What are 'educational expenses' for purposes of the home school expenses credit?" for more information. See R.C. 5747.72. "Educational expenses" includes only the following items used in home school instruction: Books and subscriptions; School supplies and supplementary materials; AND Computer software and applications. "Educational expenses" does not include expenses or fees for: Computers, tablets, printers, headphones, and other electronic devices and their supplies College course materials Non-educational computer software, subscriptions, apps Furniture (desks, chairs, tables etc.) Tuition, classroom, or instructional fees/hours for someone else to teach the dependent, including sports fees, music lessons, and driver's ed classes "Homeschool co-op" fees "Field trips" — museum/park fees, vacations Items not used directly in home instruction See R.C. 5747.72(A)(3). You should respond in writing by the date listed on the notice. Your response should include all of the following: A copy of the school district superintendent's letter excusing your dependent(s) from in-class attendance for a school year that includes the tax year referenced on the notice; Proof of expenses paid (cashed copy of payment checks, financial institution statements, etc.); AND Proof of eligible education expenses (copy of receipts with expenses circled). If the receipt does not describe the educational expenses in a descriptive manner, please provide a detailed description along with the receipts. You may submit your response using one of the following options: eServices Document Upload via OH|TAX account Login or create an OH|TAX eServices account. Click "Additional Services", then click Respond to a letter or notice under the "Letters and Notices" panel Select the specific notice you are responding to eServices Document Upload via Guest Upload Provide the Letter ID and some identifying information to respond without an OH|TAX eServices account. Mail : Ohio Department of Taxation Personal and School District Income Tax PO Box 182847 Columbus, OH 43218-2847 To qualify for this credit, you must make a monetary donation to an eligible scholarship granting organization (SGO) . The credit equals the lesser of $750 or the total amount you donated to SGOs during the tax year. If you are filing a joint return and both you and your spouse make eligible donations, each of you can claim this credit (up to $1,500 total). Beginning in tax year 2023, the credit may also be claimed for donations made on or before the unextended return due date, but the same contribution cannot be used to claim the credit in two tax years. Organizations must be certified by the Ohio Attorney General to be an eligible SGO . For additional information, view the Ohio Scholarship Donation Credit video . See R.C. 5747.73. You should respond in writing by the date listed on the notice. Your response should include a copy of your receipt or other documentation from the scholarship granting organization reflecting the contribution amount. You may submit your response using one of the following options: eServices Document Upload via OH|TAX account Login or create an OH|TAX eServices account. Click "Additional Services", then click Respond to a letter or notice under the "Letters and Notices" panel Select the specific notice you are responding to eServices Document Upload via Guest Upload Provide the Letter ID and some identifying information to respond without an OH|TAX eServices account. Mail : Ohio Department of Taxation Personal and School District Income Tax PO Box 182847 Columbus, OH 43218-2847 To qualify for this credit, you must pay tuition for your dependent(s) to an approved nonchartered, nonpublic school . The credit equals the lesser of the total tuition paid for all dependents or: $1,000 if your federal AGI is less than $50,000; OR $1,500 if your federal AGI is $50,000 and above. Only one credit can be claimed per return , regardless of your filing status. Eligible nonchartered, nonpublic schools are approved by the Ohio Department of Education. NOTE: For Tax years 2022 and prior: To qualify for the credit, you must have paid tuition for your dependent(s) to an approved nonchartered, nonpublic school and your federal adjusted gross income (AGI) must be less than $100,000. The credit equals the lesser of the total tuition paid for all dependents or: $500 if your federal AGI is less than $50,000; OR $1,000 if your federal AGI is $50,000 to $99,999. See R.C. 5747.75. You should respond in writing by the date listed on the notice. Your response should include all of the following: A copy of a tuition bill or statement from the nonchartered, nonpublic school for your dependent(s); AND Proof of tuition expenses paid (cashed copy of payment checks, financial institution statements, etc.). You may submit your response using one of the following options: eServices Document Upload via OH|TAX account Login or create an OH|TAX eServices account. Click "Additional Services", then click Respond to a letter or notice under the "Letters and Notices" panel Select the specific notice you are responding to eServices Document Upload via Guest Upload Provide the Letter ID and some identifying information to respond without an OH|TAX eServices account. Mail : Ohio Department of Taxation Personal and School District Income Tax PO Box 182847 Columbus, OH 43218-2847 The Ohio adoption credit has been repealed and is not available for adoptions that were finalized after December 31, 2022. However, this nonrefundable credit had a five-year carryforward period. Therefore, you may continue to claim any unused portion of an adoption credit for the five-year period or until it is fully utilized. Taxpayers who finalize an adoption on or after January 1, 2023 may be eligible for the adoption grant administered by the Ohio Department of Job and Family Services. See AdoptionGrant.ohio.gov for more information. See R.C. 5747.37, repealed in 2023 Am. Sub. H.B. No. 45. NOTE: The Ohio adoption credit was repealed and is not available for adoptions finalized after December 31, 2022. This FAQ applies to tax years 2022 and prior. This credit is not related to or based on the calculation of the federal adoption credit. Instead, Ohio’s credit is the greater of $1,500, or your adoption-related expenses up to $10,000, for each adoption. The adoption credit is nonrefundable; however, any unused portion can be carried forward for up to five consecutive tax years. The Department of Taxation provides a worksheet to assist in keeping track of the carryforward in the individual income tax instructions. See the FAQ “What qualifies as ‘adoption-related expenses’ for Ohio’s adoption credit?” for more information. See R.C. 5747.37, repealed in 2023 Am. Sub. H.B. No. 45. NOTE: The Ohio adoption credit was repealed and is not available for adoptions finalized after December 31, 2022. This FAQ applies to tax year 2022 and prior. "Adoption-related expenses" include all of the following: Medical care expenses of the birth mother or child in connection with the pregnancy or birth; Legal fees, guardian ad litem fees, and court expenses in connection with the adoption; Adoption agency fees and expenses; AND Certain living expenses (such as rent and utilities), not exceeding $3,000, for the birth mother that are incurred during pregnancy through the sixtieth day after the birth of the child. Note: Living expenses for the adopted child (e.g., clothing, food, medicine) and travel expenses (e.g., airfare, food, lodging, parking fees) do not qualify as adoption-related expenses. See R.C. 3107.055(A)(2) and (C). NOTE: The Ohio adoption credit was repealed and is not available for adoptions finalized after December 31, 2022. This FAQ applies to tax year 2022 and prior. Yes. While the credit cannot be claimed until the tax year in which the adoption is finalized, all qualifying expenses related to the adoption, regardless of when the expense arises, can be used to calculate the credit. See the FAQ “What qualifies as ‘adoption-related expenses’ for Ohio’s adoption credit?” for a list of qualifying expenses. See R.C. 5747.37, repealed in 2023 Am. Sub H.B. No. 45. NOTE: The Ohio adoption credit was repealed and is not available for adoptions finalized after December 31, 2022. This FAQ applies to tax years 2022 and prior. Yes. The credit is the greater of $1,500, or your adoption-related expenses up to $10,000, per child . Example: Erin adopts Allen and Anna in a single tax year. Erin calculates the adoption credit for each child separately . She determines that her adoption-related expenses for Allen totaled $7,000, thus her available adoption credit for Allen is $7,000. She separately determines that her expenses to adopt Anna totaled $15,000. Because of the limitation, her available adoption credit for Anna is $10,000. Therefore, Erin can claim $17,000 as her total Ohio adoption credit. If she doesn’t use the entire $17,000 on her return for the tax year of the adoptions, she can carry forward the unused portion for up to five consecutive tax years. See R.C. 5747.37, repealed in 2023 Am. Sub. H.B. No. 45. You should respond in writing by the date listed on the notice. Your response should include all of the following: An adoption decree or other court papers showing that an adoption was finalized; AND Receipts and/or other proof of payments (i.e., cancelled checks, bank and/or credit card statements) for expenses related to the adoption. You may submit your response using one of the following options: eServices Document Upload via OH|TAX account Login or create an OH|TAX eServices account. Click "Additional Services", then click Respond to a letter or notice under the "Letters and Notices" panel Select the specific notice you are responding to eServices Document Upload via Guest Upload Provide the Letter ID and some identifying information to respond without an OH|TAX eServices account. Mail : Ohio Department of Taxation Personal and School District Income Tax PO Box 182847 Columbus, OH 43218-2847 For FAQs on Ohio's resident and nonresident credits, see the " Income - Ohio Residency and Residency Credits " topic. NOTE: The Ohio adoption credit was repealed and is not available for adoptions finalized after December 31, 2022. This FAQ applies to tax year 2022 and prior. You qualify for this credit if all of the following are true: You adopted a child under the age of 18. The child was not your stepchild. The adoption was finalized during the tax year. This includes any adoption under the laws of any state or nation as long as the adoption is recognized under Ohio law. See R.C. 5747.37, repealed in 2023 Am. Sub. H.B. No. 45.