Tags: Retirement | retirement | Ohio | taxes

Taxes for Retirees in Ohio

By    |   Wednesday, 10 June 2015 08:40 AM

Knowing what sort of taxes to expect in Ohio as a retiree will help you make a decision of where to settle for your golden years. A state can look like an ideal place to settle until you learn of its staggering tax rates, or it can become the perfect haven once you learn of its many deductions and credits. Luckily, all of this information is available online for Ohio.

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Ohio has several laws regarding income taxes for retirees. First of all, the Retirement Living Information Center reports that Social Security is exempt from the state's retirement income tax. Retirees can earn a credit of up to $200 if their retirement income is at least $8,000. Finally, residents who are at least 65 years old can receive a credit of $50. The only restriction is that only one of these credits are allowed for each return, so retirees must choose which credit they want to use.

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There are also relatively generous tax deductions for retired military personnel. Those who retired from service in either the reserve or active parts of the United States Army, Air Force, Navy, Coast Guard, Marine Corps, or National Guard can deduct the income from their military retirement as long as the income is not otherwise excluded or deducted from federal or Ohio adjusted gross income. Additionally, taxpayers in Ohio who receive a federal civil service retirement pension and served in the military can get a limited deduction as long as some portion of their federal retirement pay is based on credit for their military service.

In addition to these deductions and exemptions for retired military personnel, there are also special deductions for those with disabilities. Those who joined the military before September 24, 1975, or who are receiving or could receive disability payments for combat injuries have broad exemption from the federal income tax. Military retired pay that is based on service-related disabilities is usually also free from the federal income tax, but total protection in this case is not always guaranteed. Deductions and exemptions on taxes for retirees in Ohio are very fair, and it is important to understand these deductions before deciding to spend your golden years in the Buckeye State.

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Knowing what sort of taxes to expect in Ohio as a retiree will help you make a decision of where to settle for your golden years.
retirement, Ohio, taxes
Wednesday, 10 June 2015 08:40 AM
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