Senator Reynolds' bill seeks to amend the Ohio Revised Code by introducing a nonrefundable income tax credit for family caregiving expenses under a new section, 5747.053. This section defines important terms such as "activity of daily living," "eligible family member," "family caregiver," and "eligible expenses." The credit allows family caregivers to claim 30% of their eligible expenses, capped at $2,000, for costs incurred while caring for an eligible family member. The bill also establishes criteria for eligible family members and caregivers, including age and income thresholds, and requires documentation from a licensed healthcare provider. Importantly, multiple caregivers can claim the credit for the same family member, provided they do not claim the same expenses.

In addition to the new credit, the bill repeals existing sections 5747.08 and 5747.98, streamlining the tax credit process and preventing taxpayers from claiming the same credit more than once in a taxable year. It clarifies that amounts withheld from income will be credited against taxes owed and allows investors in pass-through entities to claim a refundable credit based on their share of taxes paid. The bill also mandates that tax returns include an option for taxpayers to authorize their paid preparers to communicate with the Department of Taxation. These changes aim to enhance the efficiency of tax filing and credit claiming while providing specific benefits to family caregivers, with the new provisions applicable to taxable years ending on or after the bill's effective date.

Statutes affected:
As Introduced: 5747.08, 5747.98