Ohio Dependent Care, Earned Income, Senior, and Homestead Tax Relief¶
Ohio tax relief relevant to caregiver households, including the state dependent care credit, Ohio earned income tax credit, senior citizen credit, and homestead property tax reductions for older adults, people who are permanently and totally disabled, disabled veterans, and qualifying surviving spouses.
Ohio allows a state dependent care credit for taxpayers with modified adjusted gross income under $40,000. The credit is 25% of the federal dependent care credit for taxpayers with modified adjusted gross income of $20,000 to under $40,000, and equals the federal credit for taxpayers under $20,000. Ohio also allows a nonrefundable earned income tax credit equal to 30% of the federal EITC, limited to Ohio tax otherwise due. A senior citizen credit of $50 per return is available for taxpayers age 65 or older who meet the modified adjusted gross income limit. For property taxes, Ohio homestead reductions apply to approved homesteads owned and occupied by people age 65 or older, people who are permanently and totally disabled, qualifying surviving spouses, disabled veterans, and certain surviving spouses of disabled veterans or public service officers killed in the line of duty. The standard age/disability homestead reduction is based on $25,000 of true value, adjusted annually; disabled veteran and public-service-officer surviving spouse reductions use $50,000 of true value, adjusted annually.