The bill, introduced by Representatives McNally and Lett, seeks to amend sections of the Revised Code to establish a new refundable tax credit called the "thriving families tax credit." This credit is aimed at individual taxpayers with qualifying children and a household income not exceeding $85,000, providing $1,000 for each child under six and $500 for other qualifying children. The credit will be gradually reduced for households earning above $65,000. Additionally, the bill includes various amendments to existing tax definitions and provisions to align them with federal standards, enhancing clarity in the calculation of adjusted gross income and eligibility for deductions related to medical care and other expenses.
Moreover, the bill introduces several new deductions and clarifies tax regulations concerning trusts, estates, and pass-through entities. It allows taxpayers to deduct refund amounts from the thriving families tax credit and outlines specific deductions for military personnel, educators, and individuals involved in disaster response. The legislation also addresses the taxation of transfers to trusts and establishes guidelines for calculating taxable income for estates and trusts. Significant changes include the deletion of the phrase "were" in favor of "was" in the context of computing Ohio taxable income, reflecting a grammatical update. Overall, the bill aims to provide comprehensive tax relief and support for families while streamlining tax regulations for better compliance.
Statutes affected: As Introduced: 5747.01, 5747.08, 5747.98