Senator Reynolds' bill seeks to amend sections 5747.08 and 5747.98 of the Revised Code and introduce a new section, 5747.053, which establishes a nonrefundable income tax credit for family caregiving expenses. This credit is aimed at family caregivers who incur eligible expenses while caring for an eligible family member, defined by specific terms such as "activity of daily living" and "eligible expenses." The credit is set at 30% of the eligible expenses incurred during the taxable year, with a maximum limit of $2,000. The bill also outlines criteria for both caregivers and eligible family members, ensuring that eligible expenses are strictly out-of-pocket costs related to caregiving.

In addition to the caregiver credit, the bill introduces provisions regarding tax credits and the filing process for Ohio taxpayers. It allows amounts withheld under certain sections of the Revised Code to be credited against taxes owed and permits investors in pass-through entities to claim a refundable credit based on their share of taxes paid. The bill mandates that tax returns include an option for taxpayers to authorize their paid preparers to communicate with the Department of Taxation and allows for direct deposit of tax refunds. It also specifies the order in which taxpayers must claim their credits, clarifies that no credit can be claimed more than once in a taxable year, and allows for the carryforward of excess credit amounts. The new caregiver credit will apply to taxable years ending on or after the bill's effective date.

Statutes affected:
As Introduced: 5747.08, 5747.98