Ohio Composite Income Tax Return for Certain Investors in a Pass-Through Entity

Composite Income Tax Return for Certain Investors in a Pass-Through Entity
Form IT 4708
IT 4708
Rev. 11/25

Table of Contents
A
Amended Returns.................................. 9-10
Appendix A (IPTE) .................................... 31
Apportionment Formula..................... 15-16
Apportionment Formula Worksheet
(FIT Filers)................................................. 30
B
Bonus Depreciation............................. 13-14
D
Deductions............................................... 14
F
Filing Tips................................................ 4-5
G
General Instructions.............................. 8-10
H
Highlights for 2025..................................... 2
I
Income & Adjustments........................ 12-14
Investor Information................................ 16
IT K-1................................................ 9, 24-29

N
Nonrefundable Credits................. 11, 17-22
P
Payment Options..................................... 5-7
Penalties and Interest.............................. 11
PTE Returns Comparison Chart................. 3
R
Refundable Business Credits........ 11, 22-23
S
Schedule of Credits (NEW).................. 17-23
	
T
Taxable Income, Tax, Payments and Net
Amount Due Calculations................... 10-12
Taxpayer Assistance................................... 1
Tax Rate...................................................... 2

Federal Privacy Act Notice
Because we require you to provide us with a Social Security number, the
Federal Privacy Act of 1974 requires us to inform you that providing us your
Social Security number is mandatory. 42 U.S.C. 405 and Ohio Revised Code
5703.057 and 5747.08 authorize us to request this information. We need
your Social Security number to administer this tax.

IT 4708
Rev. 11/25

Taxpayer Assistance
Contact Us

Online Resources

Examiners are available by phone and for in-person
visits to the Welcome Center during the Department’s
normal business hours of 8:00 a.m. to 5:00 p.m.,
Monday through Friday, excluding holidays.

OH|TAX eServices – Create a username and password
to securely file returns, make payments, view and
respond to notices, and more at tax.ohio.gov/OHTAX.

	
	

Phone – Call 1-888-405-4039* to speak to an 	
examiner during normal business hours.

Forms – Find all pass-through entity and fiduciary
income tax forms (including fill-in versions) at tax.
ohio.gov/forms. You can also request forms anytime
by calling 1-888-405-4039*.

Welcome Center – Get assistance in person by 	
visiting us at:
Pilot – Pilot is a virtual assistant, available 24/7 to
answer questions for all tax types.
	
4485 Northland Ridge Blvd
	
Columbus OH 43229-6596
Information Releases – Visit tax.ohio.gov/info to
find detailed analyses of certain tax topics such as
	
All visitors to the Welcome Center must 		
residency and taxation of military servicemembers.
	
present a photo I.D. such as a current driver's 	
	
license, state or military I.D., or passport.
Tax Alerts – Sign up at tax.ohio.gov/taxalerts
to receive tax updates and reminders from the
	
Appointments - While appointments are not 	 Department via email.
	
required, you can schedule a phone call back 	
	
or a Welcome Center visit at tax.ohio.gov/		
Ohio Virtual Tax Academy – View webinars presented
	
help-center.
by the Department on Ohio’s state taxes at tax.ohio.
gov/OVTA.
	
Email – Visit tax.ohio.gov/OHTAX to send a 	
	
message from your OH|TAX account or visit 	
*Persons who use text telephones or adaptive
	
tax.ohio.gov/email.
telephone equipment – Contact the Ohio Relay
Service at 7-1-1 or 1-800-750-0750 and give the
	
Send messages directly to the PTE & Fiduciary communication assistant the phone number you
	
Income Tax Division at Pass-ThroughEntity@ wish to contact.
	tax.ohio.gov.
	
	

	

Mail – Write to the Department at:

	
	
	

Ohio Department of Taxation
P.O. Box 181140
Columbus OH 43218-1140

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Highlights for 2025
2025 Tax Rate
For PTE taxable reporting periods beginning in 2025,
the tax rate is 3.125%.

The IT 4708 can also be filed electronically through
the federal e-file program overseen by the IRS (irs.
gov/filing), or through a participating third-party tax
preparation product. For a current list of approved
software programs, please see the Software Developers
page on the Ohio Department of Taxation website, and
search for the most recent MeF Approval Status link.

	New Transformational Mixed Use Development
Credit
This credit is granted by the Ohio Department of
Development (ODOD). To claim this credit, you must
attach a copy of the certificate from ODOD that indicates
the amount of credit and the tax year for which the
credit is awarded. Additionally, if this credit is based
on your ownership of a pass-through entity that holds
the certificate, you must also include documentation
showing your portion of the credit. To the extent that
this credit exceeds your tax liability, any remaining
balance can be carried forward up to five years.

A tax return preparer that prepares more than 11
original tax returns during any calendar year shall use
electronic filing technology. This provision does not
apply to a tax return preparer in any calendar year
if, during the previous calendar year, the tax return
preparer prepared not more than 10 original tax returns.
See R.C. 5747.082.

Note: This credit cannot be claimed for certificates
issued prior to September 30, 2025.
For more information about the requirements for this
credit, visit development.ohio.gov, or call 1-800-8481300. See R.C. 122.09 and 5747.87.
	New Pass-Through Entity and Fiduciary Income Tax
Schedule of Credits
See the new PTE and Fiduciary Income Tax Schedule of
Credits for a full list of nonrefundable and refundable
business credits claimable on the IT 4708. The form is
available at tax.ohio.gov/forms.
IT K-1
Each entity with Ohio income should prepare a
separate IT K-1 for each investor/owner to include with
the PTE’s IT 4708 return and for the investor/owner to
include with their own return.
For more information, see IT K-1 form and instructions
at tax.ohio.gov/forms.
Electronic Filing
Starting November 12, 2025, fiduciary filers can file IT
4708 returns using the OH|TAX eServices portal. No
fees exist for this filing option; however, an account is
required for filing and account access. Visit tax.ohio.
gov/login to start a return or create an account.

IT 4708
Rev. 11/25

Should the PTE File the IT 4708?
A PTE must file an Ohio return to report and pay tax
on behalf of its nonresident individual, trust, and PTE
investors. The PTE can elect to file the IT 4708, the IT
4738 or the IT 1140. A PTE that changes forms from
year to year must ensure all periods of income are
reported and all related tax is timely and fully paid.
Note: Once the IT 4708 is filed for any given tax period,
the PTE is not permitted to amend this return to
change to an IT 1140 or IT 4738.
For more information regarding which form to file, see
the following chart.
	New Federal Partnership Adjustments Return
(FPAR) Reporting Process
The Ohio Department of Taxation has updated state
tax reporting procedures for partnerships subject to
a final federal tax adjustment.
The 2025 IT 1140 and IT 4708 returns feature a new
checkbox at top of page 1 indicating the entity is filing
as a result of a federal partnership adjustment. The
Sign Here section includes a new section identifying
the State Partnership Representative, as required.
For additional details, see the Ohio Federal Partnership
Adjustments Return (FPAR) form and instructions
available at tax.ohio.gov/forms.
See R.C. 5747.10.

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IT 4708
Rev. 11/25

2025 Ohio PTE Returns Comparison Chart
The IT 4738 Income Tax
Return

The IT 4708 Composite
Return

The IT 1140
Withholding Return

Filing date

April 15th after year in which the
entity’s taxable year ends

April 15th after year in which entity’s
taxable year ends

15th day of
fourth month after close
of fiscal year

Can the return include resident
investors?

Yes

Yes

No

Tax rate

3%
3.125%
3%
For reporting periods that begin For reporting periods that begin For reporting periods that begin
on or after 1/1/2023
in 2025
on or after 1/1/2023

All investors (owners) must be included

3.5%
For reporting periods that begin
in 2024
Can the return claim business
credits or refundable PTE
credits for payments made by
another PTE?

Effective for taxable years
ending on or after January 1,
2025, refundable PTE credits
are allowed. Other business
credits cannot be claimed.

Yes

No

Individual Investor Filings

Nonresident
May file Ohio IT 1040 Individual
Income Tax Return
Ohio resident
Must file Ohio IT 1040
Individual Income Tax Return

Nonresident
May file Ohio IT 1040 Individual
Income Tax Return
Ohio resident
Must file Ohio IT 1040
Individual Income Tax Return

Nonresident Investors:
Must file Ohio IT 1040
Individual Income Tax
Return.

Credits cannot be claimed on the IT 1140. IT 4738 filers can claim only refundable PTE credits. A PTE can claim
nonrefundable and refundable credits on the IT 4708.

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Filing Tips

IT 4708
Rev. 11/25

Use a Current Address
The Department uses the most up-to-date address on file to send correspondence, billings, assessments, and
refunds. If the address is not correct, refunds and notices will be mailed to the incorrect address. To update
an address, check the “Check below if address changed” box next to the zip code on page one when filing the
return, login to your OH|TAX eServices account to update your address on file, or visit the Business Address
Update page on tax.ohio.gov.
Verify the IT 4708 and OUPCs are for the Correct Tax Year
Do NOT cross out the year at the top of the IT 4708 or OUPC and write in a new one, as doing so will delay the
processing of the IT 4708 or OUPC and could cause a reduced refund or billing notice to be issued. A PTE with
taxable year ending in 2025 must file a 2025 IT 4708 (e.g., taxable year 07/01/2024 to 06/30/2025 would file a
2025 IT 4708). Complete the OUPC Tax Year as 2025.
Maintain a Bank Account
The Department cannot change the name on a refund check, or issue the check directly to an investor, due to
the closing or termination of a business.
Reprint Corrected Software-Generated Paper Returns
If the printed software-generated return from a tax preparation program subsequently requires changes on
the return, do not write in the changes. Instead, use the software to make the necessary changes, save, and
reprint the return. The Department’s system will not pick up handwritten changes on returns generated by
tax preparation software.
Complete All Applicable Schedules on the Return
When filing via a software program, complete all relevant schedules and do not override any line items.
Information from schedules on the IT 4708 flows to other lines that are used to calculate the tax liability. If
the schedules are not completed, a value of zero will flow to the corresponding lines, which will override any
amounts that may have been entered. The return will be recalculated accordingly, resulting in a potential
billing notice or reduced refund.
Report Apportionment Ratio and Ownership Percentage
Enter percentages and ratios in decimal format (e.g., report 30.09% as .3009; report 100% as 1.000). Enter
apportionment ratios in decimal format and carry to six decimal places. In addition, do not enter text (e.g.,
“null” or “zero”) in numeric fields.
Enter Estimated Payments and Credits on Correct Lines
Incorrect reporting of the payments and credits may result in a denied/reduced refund or bill. If the entity
receives an IT K-1 reporting a PTE payment or credit from another entity on its behalf, do not report these as
estimated payments.
●	 Line 11: Nonrefundable business credits from PTE/FI Schedule of Credits (include copy and applicable
certificate(s))
●	 Line 14: Report Ohio IT 4708, IT 1140, and/or IT 4738 estimated (OUPC/electronic) payments, prior year
overpayments claimed on this return, and amounts previously paid with an original and/or amended
2025 return
●	 Line 15: Report refundable business credits total from PTE/FI Schedule of Credits (include copy and
applicable certificate(s))
Use the new Pass-Through Entity and Fiduciary Income Tax Schedule of Credits to report all refundable
and nonrefundable credits, calculate total amounts, then report totals on applicable lines of the IT 4708. The
Schedule of Credits replaces the Schedule E form for reporting nonrefundable credits beginning in tax year 2025.
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IT 4708
Rev. 11/25

Provide Supporting Documents
Attach the appropriate documentation specified on the IT 4708 to validate the amounts reported, such as IT
K-1s to verify income/withholding flowing from another PTE to the filer, and from the filer to an investor, copies
of required certificates issued for nonrefundable credits, and any other documents providing clarification.
Report the Proportionate Share of Income and Credits
A PTE is only permitted to claim the portion of credits belonging to the investors whose income is reported
on the IT 4708 return.
Example: Four individuals each own 25% of Entity B. Two of the individuals are Ohio residents (i.e., nonqualifying investors) and two are nonresidents of Ohio (i.e., qualifying investors). Entity B owns 100% of
Entity A. Entity A pays $1,000 in Ohio pass-through entity tax.
Entity B files an IT 4708, but only includes the nonresident investors and their share of the PTE’s income on
the return (50% of the total). While Entity B can claim taxes paid by Entity A as a credit on its IT 4708, Entity B
is limited to claiming only the portion of the credit belonging to the investors included on the return of $500
(50% of $1,000). The resident investors should claim their share of the credit ($250 each) when they file their
Ohio IT 1040 returns.

Payment Options

First-Time Filers: Submit PTE Registration Form Before First Estimated Payment
If the PTE is a first-time filer, submit the Pass-Through Entity and Fiduciary Income Tax Registration Form before submitting the first estimated payment. The form can be found at tax.ohio.gov/forms. Failure to submit
the registration form may result in a delay in processing the estimated payment(s), resulting in a billing
notice or refund delay.
Submit a Separate Check for Each Balance
A separate check is required for each tax return payment, estimated payment, billing/assessment payment,
etc. The Department cannot apply a single check to multiple balances. The check or money order should be
made payable to “Ohio Treasurer of State” with identifying information on the memo line, including:
●	Federal employer identification number (FEIN)
●	Tax form using the payment (IT 4708)
●	Tax year end for the payment (mm-dd-yy)
Using Payment Coupons Created by Third-Party Software
Before submitting a payment coupon created by third party software, please verify the reporting period end
date matches the software-generated Key ID numbers and the number string at the bottom of the payment
coupon, in the format MMYY. If mismatched, the payment will be misdirected, causing a delay in processing the estimated payment(s), resulting in a billing notice or refund delay. Please contact the third-party
software company’s support line to resolve.
Methods for Making PTE and Fiduciary Income Tax Payments
1.	 OH|TAX eServices: Pass-through entity and fiduciary income tax filers can make and schedule payments
in the OH|TAX eServices system as both a logged-in user and as a guest user. At this time, PTE and fiduciary filers do not have the option to make an online credit card payment. Taxpayers can use an electronic check (ACH debit) to make the following payments online:
●	 Bill & Assessment Payment – Select to pay a specific bill
●	 Estimated, Extension, or Return Payment – Select to make a payment for a specific tax year
•		Note: Taxpayers making payments for their current year tax balance due should use the “Return Payment” option
●	 Audit Payment – Select to pay towards an audit
●	 Account Payment – Select to pay multiple outstanding balances at once

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IT 4708
Rev. 11/25

Please allow 2-3 business days for recent payment activity to be applied to your account. For specific instructions for making an electronic payment in OH|TAX eServices, see the Make and Schedule Payments job
aid at tax.ohio.gov.
2.	 Electronic Funds Transfer (EFT): Payments may be remitted by EFT (ACH credit) via the Ohio Treasurer
of State (TOS). Any questions about the EFT payment process should be directed to the Ohio Treasurer of
State by calling (877)338-6446.	
●	This is an ACH credit option; the entity initiates the payment through its own bank. No online credit
card payment or ACH debit option exists at this time through the Ohio Treasurer of State (TOS).
●	Visit the Ohio Treasurer of State website at tos.ohio.gov to access the applicable IT 4708 form-specific 		
information page with TOS routing/account numbers and codes/format the financial institution must 		
use to issue the ACH credit.
3.	 Check or Money Order: Make check or money order payable to “Ohio Treasurer of State.” A payment
made by a check or money order must be submitted with the appropriate Ohio Universal Payment Coupon (OUPC) based on the form filed. All OUPCs can be found on the tax.ohio.gov website in the searchable
Tax Forms section by entering “OUPC” in the Form Title or Number field. Please mail the payment and
OUPC to the address on the OUPC or hand deliver to our self-service walk-in center.
4.	 Electronic Check: When filing electronically through an approved software program, the PTE or fiduciary
has the option to make a payment by electronic check in the form of an Electronic Funds Withdrawal, or
direct debit. The direct debit option is only available for e-filed returns. For mailed returns created from an
approved software program, the options for payment are 1. make and schedule payments in the OH|TAX
eServices system as both a logged-in user and as a guest user, 2) Electronic Funds Transfer (EFT) via Ohio
Treasurer of State (TOS), or 3. check or money order, as listed above.
For a current list of approved software programs, please see the Software Developers page on the Ohio Department of Taxation website, and search for the most recent “MeF Approval Status” link.
Please contact the software companies directly for their electronic payments support.
Completing the Universal Payment Coupon (OUPC)
Each payment made by check or money order must be submitted with the appropriate Ohio Universal Payment Coupon (OUPC). Application of payments is driven by the OUPC used and is based on which form is filed
(i.e., IT 1041, IT 4708, IT 4738 or IT 1140). Separate OUPCs allow the Taxpayer to make either an estimated payment or a return payment. Only one type of payment can be made on each OUPC submitted.
All OUPCs can be found at tax.ohio.gov/forms by entering “OUPC” in the Form Title or Number field.
When completing the “Estimated Payment” or “Return Payment” OUPC:
●	Enter the year that coincides with the tax year start date in the format yyyy
●	Specify the appropriate payment type:
•	 Return Payment or Estimated Payment, PTE Income Tax IT 4708
●	Enter the amount of payment as a whole number without a decimal, as the OUPC features a preprinted “.00.”

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Sample IT 4708 OUPC: This form must be included with each check or money order.

Include a Check or Money Order with each IT 4708 OUPC
Payable to “Ohio Treasurer of State” with identifying information on the memo line, including:
●	Federal employer identification number (FEIN)
●	Tax form using the payment (IT 4708)
●	Tax year end for the payment (mm-dd-yy)

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IT 4708
Rev. 11/25

2025 Ohio IT 4708 General Instructions

Note: Ensure tax return pages are in numerical order.
Include any attachments after the return. The return
and supporting schedules are available at tax.ohio.
gov/forms.

of the property constitute integral parts of the
regular course of a trade or business operation
●	A partial or complete liquidation of a business,
including gain or loss from the sale or other
disposition of goodwill
●	A sale of an equity or ownership interest in a
business if the sale is treated for federal income
tax purposes as the sale of assets and/or the seller
materially participated, as described in 26 C.F.R.
1.468-5T, in the activities of the business during
the taxable year in which the sale occurs or during
any of the five preceding taxable years
●	Compensation and guaranteed payments paid by
a pass- through entity, or a professional employer
organization on its behalf, to an investor who
directly or indirectly owns 20% or more of the entity

What is a Pass-Through Entity (PTE)?
A “pass-through entity” is an S corporation, partnership,
or limited liability company (LLC). A PTE is also any
other person, except an individual, trust, or estate,
that is not classified as a C corporation for federal tax
purposes. See R.C. 5747.01(K) and 5733.04(O).
Who Should File Form IT 4708?
The IT 4708 is a composite income tax return a PTE
elects to file on behalf of its qualifying investors. It is
filed in lieu of the IT 1140 Pass-Through Entity & Trust
Withholding Tax Return. An entity cannot file the IT
4708 if it has elected to file the IT 4738 for the taxable
year. Unlike the IT 1140, a PTE can use the IT 4708,
and an EPTE can use the IT 4738, to claim credits
or payments made on its behalf by other PTEs. The
election to file the IT 4708 applies only for one tax year
and, once made, is binding and irrevocable.
Note: A trust cannot file the IT 4708. See R.C.
5747.08(D).
Which Investors Can Be Included on Form IT 4708?
The PTE can elect to include any qualifying investor,
other than a C Corporation or other exempt entity, on
form IT 4708. This includes individuals (both residents
and nonresidents), estates, trusts, and other PTEs. The
PTE can include an investor on the IT 4708, regardless
of how another PTE files on the investor’s behalf.

Nonbusiness income is any income other than
business income.
How Does an Entity Determine What Income is
Business Income?
Business income can be determined by using either
of two tests:
●	Transactional Test: Looks to the nature, frequency
and regularity of the transaction;
●	Functional Test: Looks to whether the property was
integral to the trade or business, or if it generated
business income in the past.
Generally, all income from a PTE is presumed to be
business income.
See R.C. 5747.01(B).
Can a PTE Claim a Net Operating Loss (NOL) on the
IT 4708?
PTEs are not permitted to claim an NOL deduction on
the IT 4708. Instead, investors who want to utilize an
NOL deduction must file the IT 1040.

If a nonresident investor’sonly Ohio-sourced income is
included on the IT 4708, the investor is not required to
file an Ohio individual income tax return for the tax year.
However, the investor may choose to file an income tax
return and claim a refundable credit for taxes paid by
the PTE on the IT 4708.

How Does a PTE Determine Its Ohio Taxable Year?
A PTE’s taxable year for Ohio income tax purposes is the
same as its taxable year for federal income tax purposes.

See R.C. 5747.08(D)(1)(a); 5747.08(I).
How Does Ohio Law Define Business and Nonbusiness
Income?
“Business income” is income, including gain/loss
arising from any of the following:
●	Transactions, activities, and sources in the regular
course of a trade of business operation
●	Real, tangible, and intangible property if the
acquisition, rental, management, and disposition

However, when filing the IT 4708 return the PTE must
file a single return that includes all tax periods and
aggregates all income and expenses for the investor(s).
Multiple IT 4708 returns (including short-period
returns) cannot be filed in the same year.

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IT 4708
Rev. 11/25

When is the Return Due?
A PTE with a taxable year end during calendar year
2025 must file its 2025 IT 4708, including copies of its
IT K-1s, by April 15, 2026.

discuss the return with the Department. Preparers
with a Preparer Tax Identification Number (PTIN) must
provide it on all returns.

Filing Extensions
The extension due date for filing the IT 4708 is September
15, 2026, provided the PTE qualifies for an IRS extension
of time to file. Ohio does not have an extension request
form but honors the IRS extension. Include a copy of
the IRS extension or IRS acknowledgement, and/or the
extension confirmation number if electronically filed.
However, if the PTE has a fiscal year end, it may have
a different extension due date. If your due date falls on
a Saturday, Sunday, or legal holiday, the due date is
moved to the next business day.

Can the PTE’s Tax Preparer Contact the Department
About the IT 4708?
The PTE can check the box below the tax preparer’s name
on page 2 of the return to authorize the preparer to:
●	Contact the Department about the status of the
PTE return, payments, or refund
●	Provide the Department with information missing
from the PTE’s return, AND
●	Respond to inquiries or notices from the
Department related to the return

See R.C. 5703.262(B) and 5747.08(F).

An extension of time to file does not extend the time
for payment of the tax due. The PTE must make
extension payments by April 15, 2026 with the required
IT 4708 OUPC available at tax.ohio.gov/forms. Interest
will accrue on any tax not paid by April 15, 2026, and
penalties may also apply.

See R.C. 5747.08(J).

See R.C. 5747.08(G) and Ohio Admin Code 5703-7-05.

See R.C. 5747.45(B).

Estimated Tax Payments
The PTE must make estimated tax payments with
the IT 4708 Ohio Universal Payment Coupon (OUPC)
for the entity’s taxable year if the PTE’s estimated tax
liability after credits is greater than $500. The interest
penalty applies to estimated payments not timely
made. For more information, see page 10.

When Should the PTE Complete the IT K-1?
The IT K-1 allows the PTE to report its income,
adjustments, credits, and apportionment information
to its investors. The information is used by the PTE’s
investors when completing the IT 1040, IT 1041, IT
4708, IT 4738 or IT 1140.

Due Dates for Estimated Tax Payments
If any filing due date set forth below falls on a weekend
or on a holiday, then the due date becomes the first
business day thereafter.
Due Date for Estimated Payments

% Cumulative Estimated Payments
Made

On or before the 15th day of the 4th
month of the taxable year.

22.5% of the current year tax liability

On or before the 15th day of the 6th
month of the taxable year.

45% of the current year tax liability

On or before the 15th day of the 9th
month of the taxable year.

67.5% of the current year tax liability

On or before the 15th day after the
close of the taxable year.

How Does a PTE Determine its Ohio Method of
Accounting?
A PTE’s method of accounting on its Ohio return is the
same method it used for federal income tax purposes.

The PTE must complete two copies of the IT K-1 for
each investor whose income is included on the IT
4708. One copy of the IT K-1 must be included when
filing the IT 4708. The other copy should be provided
to the investor.
The IT K-1 is available at tax.ohio.gov/forms.
Amended Returns

90% of the current year tax liability

For more information, see the Payment Tips on page 3.

Does Ohio Follow the Alternative Preparer Signature
Procedures?
The Department follows federal Notice 2004-54.
However, the paid preparer must print (not sign)
his/her name if the PTE authorizes the preparer to

When to Amend
The PTE can file an amended IT 4708 to report changes
to the originally filed return(s). An amended return
can result in either a tax due or a refund based on the
changes. Under certain circumstances, an amended
return may be required. To amend the IT 4708 the PTE
should file a new return showing the original amounts
for any item that remains unchanged and reflecting
all proposed changes; indicate that it is amended by
checking the box at the top of page 1.
Please include a copy of the following with the
amended return:

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●	Any canceled checks used as payment on the
originally filed return, AND
●	Supporting documentation that reflects the
reason(s) for filing the amended return
When Not to Amend Your Return
Some common mistakes may not require an amended
return. Some examples include:
●	Math errors
●	Missing pages or schedules
●	Demographic errors
●	Missing income statements (W-2, 1099, K-1) or
credit certificates
In these situations, the Department will either make
the corrections to the return or contact the PTE to
request the needed documentation.
Requesting a Refund
The PTE may want to amend the return to request an
additional credit, deduction or payment. Such changes
may result in a refund. The PTE has four years from the
date of the payment to request a refund. The PTE must
include supporting documentation to substantiate
the changes reported on the amended return. Some
common required documentation includes:
●	Federal return, including applicable schedules and
attachments
●	Copies of the income statements (W-2, 1099, etc.)
●	IT K-1s or credit certificates (ODOD, OHFA, other)

IT 4708
Rev. 11/25

The amended IT 4708 should be filed no later than 90 days
after the IRS completes its review of the federal return.
Failure to file the return within this time period may result
in an assessment or a denial of the refund claim.
The 90 days begins to run when:
●	Period for the federal appeal has expired, OR
●	Date a federal settlement agreement is signed
See R.C. 5747.10.
Taxable Income, Tax, Payments
and Net Amount Due Calculations
Generally, all income from a PTE is presumed to be
business income.
Note: Amounts reflected in Schedule I are the combined amounts of income, adjustments and credits
ONLY for those investors who are participating in the
filing of this return.
Line 1 – Total Income (loss) from Schedule I, line 38
This line must equal line 38 (the sum of lines 24 through
37); a discrepancy will delay processing of the return
and may result in a billing or reduced refund.
Line 2 – Total Deductions from Schedule II, line 44
This line must equal line 44 (the sum of lines 39 through
43); a discrepancy will delay processing of the return
and may result in a billing or reduced refund.

Reporting Additional Tax Due
The PTE should amend the return to report additional
income or reduce a previously claimed credit or
deduction. Such changes may result in additional tax
due. Payment should be included with the amended
return using an IT 4708 OUPC payment coupon.

Line 4 – Net Allocable Nonbusiness Income (Loss)

Changes to the Federal Return
If the IRS makes changes to the federal return, either
based on an audit or an amended return, and those
changes affect the Ohio return, the PTE is required to
file an amended IT 4708. DO NOT file your amended
Ohio return until the IRS has finalized the changes to
the federal return. Once the changes are finalized,
please include a copy of all the following:
●	Federal amended 1065 OR 1120S, AND
●	Date on a refund check issued by the IRS, OR
●	IRS acceptance letter

The types of income which MAY be excluded are all types
and classifications of income from an investment passthrough entity (IPTE) attributable to the distributive
shares of income from other PTEs and certain other net
income items as listed in R.C. 5733.401(C)(1).

Note: Instead of including a copy of these documents,
the PTE may submit a copy of the IRS Tax Account
Transcript reflecting the updated federal return
information.

Generally, income earned by a PTE is apportionable
business income. If income is shown on this line, the
PTE must provide a narrative and schedule explaining
the types of income included on this line and why they
are nonbusiness income.

Failure to include the explanation will delay processing of
the return and may result in a billing or reduced refund.
Line 8 – Net Nonbusiness Income (Loss) Allocated
to Ohio
If income is shown on this line, the PTE must provide a
narrative and schedule explaining the types of income
included on this line and why they are nonbusiness income.
An investment pass-through entity (IPTE) can include
Ohio income from other PTEs as listed on the IT

- 10 -

K-1, line 2a, Ohio portion; include the IT K-1s for
verification. Failure to include this information will
delay processing of the return and may result in a
billing or reduced refund.
See R.C. 5747.20, 5747.21, 5747.212, 5747.221 and
5747.231; 5733.401.
Line 10 - Tax Liability Before Credits
For reporting periods beginning in 2025,, the tax rate
is 3.125%. Multiply line 9 “Ohio taxable income” by
the tax rate and enter the amount as a whole number.
Line 11 – Nonrefundable Business Credits
A PTE claiming nonrefundable business credits must
include the Ohio PTE & Fiduciary Schedule of Credits
when filing its return. The PTE can only claim the
distributive share of direct and indirect nonrefundable
business credits attributable to those investors whose
income is included on this return.
Line 13 – Interest Penalty on Underpayment of
Estimated Tax
A PTE that does not make timely, sufficient estimated
payments may be subject to the 2210 interest penalty.
A PTE filing the IT 4708 should use pages 1 and 2 of the
Ohio IT/SD 2210 to determine if an interest penalty is
due, and if so the interest penalty amount. This form
is available at tax.ohio.gov/forms.
Note: A PTE may be subject to the interest penalty
even if it is due a refund when filing its return.
See R.C. 5747.09(D) and (E).
Line 14 - Ohio IT 4708, IT 1140, IT 4738 Estimated
Payments, Prior Year Overpayments, Amounts
Previously Paid with Original/Amended Return
Enter sum of all estimated (OUPC/electronic) IT
4708, IT 1140, or IT 4738 payments and/or prior year
overpayments being claimed on this return, and
amounts previously paid with a current year original
and/or amended return.

IT 4708
Rev. 11/25

included on this return. Provide IT K-1s or applicable
certificates to verify credits claimed.

Line 19 – Amount of Line 18 to be Credited Toward
Next Year’s Liability
A credit carryforward is only allowed on a timely-filed,
original return; otherwise, any overpayment will be
refunded.
Enter the amount on line 18 (overpayment) as a credit
you would like carried forward to the next tax period.
The overpayment can be split between the credit
carryforward and the refunded amount.
Line 20 – Amount of Line 18 to be Refunded
Enter the amount of Line 18 (overpayment amount)
you would like refunded to you.
Interest on Overpayments. Once the return has
been verified, if the refund exceeds one dollar it will
be refunded to the PTE. The PTE will receive interest
on the refund from the date of payment until the date
of the refund if the amount is not refunded within 90
days of the later of the return’s due date, or the date
the return was filed.
During calendar year 2026, interest accrues on
overpayments at an annual rate of 7%.
See R.C. 5747.11(B) and (C)(1).
Line 22 – Interest Due on Late Payment of Tax
Interest is due on any unpaid tax exceeding one dollar
from the unextended due date until the date the tax is
paid. An extension of time to file does not extend the
payment due date. The interest rate for calendar year
2026 is 7%.
See R.C. 5747.08(G).
Line 23 – Total Amount Due

Make payments by:
●	Electronic check payment in OH|TAX eServices
portal by logging into account or making a
payment as a guest
Line 15 – Total Refundable Business Credits
●	Electronic check through an approved software
program when filing electronically
This line must equal line 40 from the Ohio PTE &
●
	
Electronic funds transfer (EFT) as ACH credit (initiated
Fiduciary Schedule of Credits; a difference will delay
by bank) via the Ohio Treasurer of State, OR
processing of the return and may result in a billing
●
	
Sending a personal check / money order with the
or reduced refund.
Ohio OUPC
NOTE: The PTE can only claim the distributive share
For questions regarding the EFT payment program, see
of direct and indirect refundable business credits
the Electronic Funds Transfer information on the Ohio
attributable to those investors whose income is
Treasurer of State website at tos.ohio.gov.
- 11 -

IT 4708
Rev. 11/25

●	Interest expenses
●	Rents and royalties
●	Compensation paid to an individual investor’s
family members or other entities
●	Expense sharing, or “common paymaster” arrangements

Schedule I – Income and Adjustments
Note: Amounts reflected on Schedule I are the
combined amounts of income and adjustments ONLY
for those investors who are participating in the filing
of this return. The amounts included are those which,
pursuant to the Constitution of the United States, the
Constitution of Ohio, or any other Ohio or federal law,
are subject to a tax measured by net income.

For more information, see the Information Release
Meaning of “Indirect” Ownership.

Generally, all income from a PTE is presumed to be
business income. See R.C. 5747.01(B).

See R.C. 5733.40(A)(3) and (4) and R.C. 5733.40(P),
IRC §1563(e), and IRC §318.

Line 25 – Related Member Adjustments

Lines 26 and 27 – Guaranteed Payments and
Compensation

All pass-through entities are required to add back
expenses or losses paid or incurred with respect to
transactions involving related members. A “related
member” is:
●	Any person described in IRC §1563(e) that owns
at least 40% of the PTE
●	Any individual investor, or the investor’s spouse,
child, grandchild, or parent if combined they own
at least 50% of the PTE
●	An investor that is a partnership, estate, trust, or
corporation, or the investor’s partnership, estate,
trust, or corporation if combined they own at
least 50% of the PTE, OR
●	A corporation, or a party related to the corporation that would require an attribution of stock
from the corporation to the party or from the party to the corporation if the PTE owns at least 50%
of the corporation
Ownership includes: direct, indirect, constructive,
and beneficial.
●	Direct – Investor owns a PTE with no other owners in between
●	Indirect – Investor owns a PTE that owns another
PTE
●	Constructive – Person is not an investor but is
deemed to own the PTE through attribution because of their relationship to one of the PTE’s investors
●	Beneficial – Person is a beneficiary of a trust or
estate, and thus is treated as an “owner” of the
asset

Enter compensation or guaranteed payments the PTE
paid, or a professional employer organization (PEO)
paid on behalf of the PTE, to an investor who directly
or indirectly owns at least 20% of the profits or capital
of the PTE at any point during the tax year. These
amounts are reclassified from guaranteed payments/
compensation to a distributive share of income.
Note: Agreements that Ohio has with Kentucky,
West Virginia, Pennsylvania, Michigan, and Indiana
relating to the taxation of compensation do not apply.
Compensation paid to a 20% or more investor must
be included on this line.
Example 1: Jim is a Kentucky resident who owns 30%
of PTE A. He provides services for PTE A in Kentucky
and is paid a wage for his services. Since Jim owns
at least 20% of PTE A, his wages are reclassified
as a distributive share of income. Thus, the wages
are required to be included on PTE A’s return as
a compensation add-back, even though Jim is a
Kentucky resident.
Example 2: Karen is an Iowa resident who owns
19% of PTE A. Karen receives wages from PTE A.
However, since Karen does not own at least 20% of
PTE A, her wages are not reclassified as a distributive
share of income or added back onto the return as a
compensation add-back.
See R.C. 5733.40(A)(7).
Lines 29 through 33- Portfolio Income

Note: The attribution rules in IRC §318 apply for purposes of evaluating the ownership requirements.

Exclude from net long-term capital gain (loss) line any
capital loss carryforward amount.

Common expenses and losses subject to add back
when paid to a related member include:
●	Management fees

If the sum of Line 32 and Line 33 results in an overall
loss, the amount on Line 33 is limited to $3,000 per
participating investor.

- 12 -

Line 35a-Line 35c (Schedule VI): IRC §168K Bonus
Depreciation and §179 Expense Add-back
Add 5/6 of IRC §168(k) bonus depreciation allowed
under the IRC. Also, add 5/6 of any qualifying §179
depreciation expense. However:
●	Replace “5/6” with “2/3” for employers who
increase their Ohio income taxes withholding by
an amount equal to or greater than 10 percent over
the previous year, OR
●	Replace “5/6” with “6/6” for taxpayers who incur
a net operating loss (NOL) for federal income tax
purposes if the loss was a direct/indirect result of
the §168(k) and/or §179 depreciation expenses.
The amount subject to the add-back is the taxpayer’s
total §179 expense less $25,000 plus all of the
taxpayer’s §168(k) depreciation expense. If the amount
of qualifying §179 depreciation expense is greater than
$200,000, the $25,000 deduction is reduced dollar for
dollar by any amount over $200,000, per the IRC as it
existed as of December 31, 2002.
Using the following lines from federal form 4562,
the add-back formula is (line 12 - $25,000) + line 14
+ line 25. The sum of these lines is multiplied by the
appropriate ratio.
Additionally, there is no requirement to make Ohio’s
depreciation add-back in either of the following
circumstances:
●	The depreciation is from a PTE, and the investor
owns less than 5% of the PTE. This is true even if
the PTE performed the add-back on its Ohio filing
(i.e., the IT 1140, IT 4708 or IT 4738), OR
●	A PTE that increases its Ohio income taxes withheld
over the previous year’s by an amount greater
than or equal to the sum of §168(k) and/or §179
depreciation amounts.
Example 1: PTE A has a total of $180,000 subject to
add-back for the current tax year. The $100,000 of §179
depreciation is from PTE A’s business operations. The
$80,000 of §168(k) depreciation is from its distributive
share of bonus expense from PTE B.
Source of
Depreciation
PTE A operations
PTE Bdistributive share/
bonus expense
Total add-back
for tax year:

Add-back Amount
(§179-$25,000)

§168(k)

Add-back
Ratio

Add-back
Amount

$75,000

$0

5/6

$62,500

$80,000

5/6

$66,667

IT 4708
Rev. 11/25

Example 2: PTE A owns 100% of PTE B. PTE A has
$180,000 subject to add-back for the current tax
year including $100,000 of §179 depreciation from
PTE A’s business operations and $80,000 of §168(k)
depreciation from its distributive share of bonus
expense from PTE B. PTE B increased its Ohio employer withholding for its employees by at least 10%
over the previous tax year. PTE A must use a different add-back ratio for each source of depreciation,
and calculates its depreciation add-back as follows:
Source of
Depreciation
PTE A operations
PTE Bdistributive share/
bonus expense

Add-Back - Combined add-back
Add-back Amount
(§179-$25,000)

§168(k)

Add-back
Ratio

Add-back
Amount

$75,000

$0

5/6

$62,500

$0

$80,000

2/3

$53,333

Total add-back
for tax year:

$115,833

Example 3: PTE A still has $180,000 subject to addback for the current tax year, but its federal taxable
income is ($100,000) (i.e. PTE A has a federal net operating loss). PTE A would calculate its depreciation
add-back as follows:
Source of
Depreciation
PTE A operations
PTE Bdistributive share/
bonus expense

Add-Back - NOL
Add-back Amount
(§179-$25,000)

§168(k)

Add-back
Ratio

Add-back
Amount

$75,000

$0

6/6

$75,000

$0

$80,000

6/6

$80,000

Total add-back
for tax year:

$155,000

See R.C. 5733.40(A)(5) and 5747.01(A)(17)(a)(i-v).
Line 36 – Other Income or Deduction
Enter income or deductions not otherwise reported
on Schedule II that are part of an investor’s distributive share from the PTE. Include a supporting schedule detailing each amount reported on this line, as
well as an explanation of why each amount is included on this line. Failure to provide this information
may delay the processing of the return.
The following generally can be included on this line:

$129,167

- 13 -

●	Section 59(e)(2) – depletion amortized on federal Schedule E; include federal form 4562
●	Deductions allocable to royalties appearing on
federal Schedule E
●	§754 election – made to adjust the basis of
partnership property in the event of a sale or exchange of partnership interest, a partner’s death,
or certain distributions to partners
●	§743(b) – 743(b) provides certain adjustments in
the case of a sale or exchange of a partnership
interest in which a §754 election is in place

The following generally cannot be included on this line:
●	Charitable contributions
●	Any state or federal credit amount, including the
research and development tax credit and the
work opportunity credit
●	Wage expenses not deducted on the federal
return related to work opportunity credit from
Ohio Schedule of Adjustments
●	Itemized deductions from federal Schedule A

See R.C. 5733.40(A)(5) and 5747.01(A)(18).

IT 4708
Rev. 11/25

Line 41 – Net Federal Interest and Dividends Exempt
from State Taxation
Enter interest and dividend income from obligations
issued by the United States government or its
possessions/territories that are exempt from Ohio tax
under federal law. A comprehensive list of deductible
interest and dividends can be found in Information
Release IT 1992-01 – Exempt Federal Interest Income.

Line 37 – Federal Conformity Additions

Examples of interest income that are not deductible:
●	Interest paid by the IRS on a federal income tax
refund;
●	Interest income from Fannie Maes or Ginnie Maes.

This line is for federal conformity adjustments. For
updates on Ohio Conformity, see Ohio Conformity
Updates at tax.ohio.gov and R.C. 5701.11.
Line 38 – Total Income (Loss)

See R.C. 5747.01(A).

This line must equal the sum of line 24 through line
37. A difference will delay processing of the return
and may result in a billing or reduced refund.

Line 42 – Federal Conformity Deductions
This line is for federal conformity deductions.

Schedule II – Deductions
Lines 39-43 are allowable deductions for those
investors that participate in the filing of the IT 4708. Do
not include deductions that have already been used to
reduce income items included on Schedule I. DO NOT
include deductions solely because they are available to
an individual on the federal 1040 or the Ohio IT 1040.
Line 40 – Ohio Depreciation Deduction
Calculate the deduction based on prior year add-backs
on Ohio PTE returns filed with the same FEIN. Deduct:
●	1/5 of prior year 5/6 add-backs
●	1/2 of prior year 2/3 add-backs, AND/OR
●	1/6 of prior year 6/6 add-backs
of applicable IRC §168(k) bonus depreciation and
§179 expense add-backs on a prior year filed IT 4708,
IT 1140 or IT 4738.
Note: Deduct only amounts that were added by the
PTE under this FEIN on a prior year’s IT 1140, IT 4708
or IT 4738. This deduction is available even if the asset
is no longer owned by the PTE.
The deduction must be taken in equal increments in
consecutive tax years. If the deduction is missed in a
taxable year, any unused portion from any given tax year
is not eligible to be carried forward. Instead, the PTE would
have to amend the prior returns to claim the deduction.
If there is an NOL, the deduction cannot be claimed for
that year and will be carried forward to the next year
without an NOL.

Note: Do not enter any federal adjustments solely
because the deduction is available to an individual on the
federal 1040 or the Ohio IT 1040. For more information,
see Ohio Conformity Updates at tax.ohio.gov.
See R.C. 5701.11.
Line 43 – Exempt Gains from the Sale of Ohio State or
Local Government Bonds
If included in federal income:
●	Deduct interest income and gains from the sale
or disposition of Ohio public obligations and Ohio
purchase obligations and income from a certain
transfer agreement or an enterprise transferred under
that agreement.
●	Add any loss from the sale or disposition of Ohio
obligations.
See R.C. 5747.01(A)(8).
Line 44 – Total Deductions
This line must equal the sum of line 39 through line 43.
A difference will delay processing of the return and may
result in a billing or reduced refund.
Schedule III – Apportionment Formula
The three apportionment factors are property and
payroll, each weighted at 20%, and sales, weighted at
60%, for a total of 100%. However, if any factor’s “total
everywhere” is zero, the weights of the remaining
factors must be proportionately increased so that the
total remains 100%.

- 14 -

Example: ABC LLC is a single-member LLC with
no employee payroll. In calculating its Ohio
apportionment ratio, ABC LLC must reweight its
property factor to 25% and its sales factor to 75%.
If a PTE owns an interest in other PTEs, when
calculating its apportionment ratio, the PTE must
include its proportionate share of other PTEs “Within
Ohio” portion and the “Total Everywhere” portion
of property, payroll and sales. These amounts
will be reported by the other PTEs in the “Entity
Apportionment Percentage” section of the Ohio IT K-1
issued to the PTE-owner.
Note: A PTE may request, in writing with a timely filed
original return or amended return, an alternative form of
apportionment instead of the method listed above. Such
request is only valid if approved by the Department.
See R.C. 5747.231, 5747.21 and 5733.05(B)(2).

IT 4708
Rev. 11/25

Total Everywhere: Enter the average value of all
property owned by the business during the tax year.

Property owned by the business is valued at its original
cost.
Line 45b - Property Rented
Within Ohio: Enter the average value of all Ohio
property rented by the business during the tax year.
Total Everywhere: Enter the average value of all
property rented by the business during the tax year.
Property rented by the business is valued at eight times
the net annual rental rate (annual rental expense less
subrental receipts).
Payroll Factor
The payroll factor is the ratio of:
Total compensation in Ohio
Total compensation everywhere

Property Factor
The Property Factor is the ratio of:
Average value of property in Ohio
Average value of property everywhere
“Property” includes any real and tangible personal
property that is owned, rented, subrented, leased
and/or subleased in the course of a trade or business
by the PTE or other PTEs owned by the PTE. Property
does not include any of the following:
●	Construction in progress
●	Property not used in a trade or business
●	Property for which Ohio has issued an air, noise, or
industrial water pollution control certificate
●	Property used exclusively during the tax year for
qualified research
Note: The original cost of qualifying improvements
to property in an enterprise zone, for which Ohio has
issued a Tax Incentive Qualification Certificate, should
only be included in Total Everywhere.
The “average value” of business property is calculated
by averaging the total value of all applicable property
owned or rented at the beginning and end of the tax year.
See R.C. 5747.21(B), 5733.05(B)(2) and 5709.65.
Line 45a - Property Owned
Within Ohio: Enter the average value of all Ohio
property owned by the business during the tax year.

“Compensation” means any form of remuneration
paid by the PTE, or other PTEs owned by the PTE, to an
employee for personal services. Compensation does
not include any of the following:
●	Amounts paid to employees for services unrelated
to a trade or business
●	Amounts reclassified as a distributive share of
income from a PTE under R.C. 5733.40(A)(7), AND
●	Amounts paid to employees who are primarily
engaged in qualified research
Note: Compensation paid to certain employees at an
urban job and enterprise zone facility, for which Ohio has
issued a Tax Incentive Qualification Certificate, should be
included only in total compensation everywhere.
See R.C. 5747.21(B), 5733.05(B)(2)(b) and 5709.65.
Line 46 - Payroll	
Within Ohio: Enter the total compensation paid in Ohio
during the tax year. Compensation is paid in Ohio if:
●	The employee’s job is entirely in Ohio.
●	The employee’s job is primarily in Ohio with only
incidental work outside Ohio.
●	The employee performs services in Ohio and either
the headquarters, or, if no headquarters exists,
the place from which the service is directed or
controlled, is in Ohio, OR

- 15 -

●	The employee is a resident of and performs some
services in Ohio, and the headquarters or the place
from which the service is directed or controlled is
not in any state in which some part of the service
is performed.
Compensation paid to any employee of a common
or contract motor carrier who performs regularly
assigned duties in more than one state should be
assigned to Ohio by the ratio of mileage traveled by
the employee in Ohio to the total mileage traveled
by the employee everywhere during the taxable year.
Total Everywhere: Enter the total compensation paid
everywhere during the tax year.
Sales Factor
The sales factor is the ratio of:
Sales in Ohio
Sales Everywhere
“Sales” includes gross business receipts earned by the
PTE or other PTEs owned by the PTE, such as:
●	Receipts from the sale of real property, tangible
personal property, or services
●	Receipts from rents and royalties from real and
tangible personal property, OR
●	Receipts from the transfer of or the right to use
intellectual property such as trademarks, trade
names, patents, and copyrights
“Sales” does not include:
●	Interest and dividends
●	Receipts from the transfer of intangible property
other than trademarks, trade names, patents,
copyrights or other similar intellectual property
●	Receipts from the transfer of real or tangible
personal property that is either a capital asset or
an Internal Revenue Code section 1231 asset, AND
●	Receipts from sales to certain public utilities,
insurance companies, and financial institutions
described in R.C. 5733.05(B)(2)(c)

Line 47 – Sales

IT 4708
Rev. 11/25

Within Ohio: Enter gross receipts from sales within
Ohio during the tax year. Sales within Ohio include all
the following:
●	Receipts from sales of tangible personal property,
less returns and allowances, to the extent the
property was received by the purchaser in Ohio
●	Receipts from services to the extent the purchaser
ultimately used or received the benefit of the
services in Ohio
●	Rents and royalties from tangible personal property
to the extent the property was used in Ohio
●	Receipts from the transfer of certain intellectual
property to the extent the property was used in Ohio
●	Receipts from the right to use certain intellectual
property to the extent the receipts are based on
the right to use the property in Ohio
●	Receipts from the sale of real property located in
Ohio, AND
●	Rents and royalties from real property located in Ohio
Note: For tangible personal property, where the
property is “received by the purchaser” is not the
same as where the purchaser takes physical or legal
possession. Instead, it is considered “received” where
it is ultimately used by the purchaser.
See R.C. 5733.05(B)(2)(c)(i) and (ii).
Total Everywhere: Enter the gross receipts from sales
everywhere during the tax year.
Investor Information
Complete investor information should be reported
as follows:

Note: Income amounts excluded from the sales factor
may still be considered business income under Ohio law.
See R.C. 5747.21(B) and 5733.05(B)(2)(c).

- 16 -

●	Include with the IT 4708 return copies of Ohio IT
K-1s for all investors, reporting their proportionate
or distributive share of income, adjustments, and
credits.
●	Provide a copy of the Ohio IT K-1 to each investor.
●	Visit tax.ohio.gov/forms to obtain a copy of the
Ohio IT K-1 form.

IT 4708
Rev. 11/25

Ohio PTE & Fiduciary Schedule of Credits
The credits listed below may not be applicable to all pass-through entity (PTE) and fiduciary income tax filers.
The Ohio PTE & Fiduciary Schedule of Credits is only available for the IT 4708 and IT 1041 and should not be
completed for the IT 1140 or IT 4738. The Schedule of Credits indicates whether a credit is available for trusts,
estates, and/or PTEs. See R.C. 5747.08(D).

Nonrefundable Credits

Credit Amount

The nonrefundable business credit schedule lists the
nonrefundable business credits in the order in which
the entity may claim them as well as the carryover
period for each credit. The order is important if the
entity is entitled to more than one credit and the entity
is unable to use some portion of the total credit in the
year generated.

Retirement income included in Estates’ taxable income
$0
$ 501
$ 1,501
$ 3,001
$ 5,001

$ 500
–
$ 1,500
–
$ 3,000
–
$ 5,000
–
$ 8,000
or	more
–

Retirement
Income Credit
0
$ 25
$ 50
$ 80
$ 130

Read all of the following instructions carefully for each
	
$ 8,000	
$ 200
section to determine if the entity is eligible to claim
See R.C. 5747.055(B).
that particular credit.
Line 3 – Lump Sum Retirement Credit
An entity must include the Schedule of Credits and any
supporting documentation when filing the return. All Important: For IT 4708 filers, this credit is not available.
other supporting schedules or documentation are sub- Enter zero on this line. For IT 1041 filers, this credit is
ject to examination by the Ohio Department of Taxation. only available to estate filers. Trust filers should enter
zero on this line.
Trust/estate is only entitled to the portion of the Note: If the estate takes this credit, it cannot take the
nonrefundable credit that relates to the retained retirement income credit on this year’s return or any
earnings in the trust/estate.
future return.
Line 2 – Retirement Income Credit
Important: For IT 4708 filers, this credit is not available.
Enter zero on this line. For IT 1041 filers, this credit is
only available to estate filers. Trust filers should enter
zero on this line.
To qualify for this credit, all of the following must be true:
●	The decedent must have received retirement income
from a pension, profit sharing or retirement plan
(such as traditional IRAs, 401(k) plans).
●	This income is included in the estate’s federal
taxable income (e.g., it was not distributed to any
beneficiary).
●	This income was received on account of the
decedent’s retirement, AND
●	The decedent has not previously taken the Ohio lump
sum retirement credit.

To qualify for this credit, all of the following must be true:
●	The decedent must have received a total lump sum
distribution on account of retirement.
●	The distribution must have come from a qualified
pension, retirement or profit sharing plan.
●	This income was included in the estate’s federal
taxable income (e.g. it was not distributed to any
beneficiary), AND
●	The decedent has not previously claimed this credit.
Use the Lump Sum Worksheet on Appendix A to
calculate this credit.
See R.C. 5747.055(C).
Line 4 – Senior Citizen Credit
Important: For IT 4708 filers, this credit is not available.
Enter zero on this line. For IT 1041 filers, this credit is
only available to estate filers. Trust filers should enter
zero on this line.

The credit is based on the total retirement income
included the estate’s taxable income. The maximum
To qualify for this credit, both of the following must
credit per return is $200.
be true:
●	The decedent was at least 65 as of the date of death,
AND
●	The decedent has not previously taken the Ohio lump
sum distribution credit.
The credit is equal to $50 per return.
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●	Ohio Senate
●	Ohio House of Representatives

See R.C. 5747.055(F).
Line 5 – Lump Sum Distribution Credit

IT 4708
Rev. 11/25

The credit equals the amount contributed during the tax
year up to $50 per return, or $100 if you are filing jointly.
Contributions to local candidates (such as city or county
officials) or federal candidates (such as President or U.S.
Note: If the estate takes this credit, it cannot take the Senator) do not qualify for this credit.
$50 senior citizen credit on this year’s return or any Note: This credit will no longer be available after tax
future return.
year 2025.
To qualify for this credit, all of the following must be
See R.C. 5747.29.
true:
●	The decedent was at least 65 as of the date of death. Line 10 – Scholarship Donation Credit
●	The decedent must have received a total lump sum
distribution from a qualified pension, retirement or To qualify, you must make a monetary donation directly
profit sharing plan.
●	This income was included in the estate’s federal to an eligible scholarship granting organization (SGO).
taxable income (e.g., it was not distributed to any The credit equals the lesser of $750 or the total amount
you donated to SGOs during the tax year.
beneficiary), AND
●	The decedent has not previously claimed this credit.
Use the Lump Sum Worksheet on Appendix A to You may also include amounts donated in 2026, prior
to April 16. However, the same contribution cannot
calculate this credit.
be used to claim the credit in two different tax years.
See R.C. 5747.055(G).
You may also qualify if a pass-through entity, in which
Line 6 – Child Care and Dependent Care Credit
you have ownership interest, made a monetary donaImportant: For IT 4708 filers, this credit is not available. tion to an eligible SGO. You may claim your proportionEnter zero on this line. For IT 1041 filers, this credit is ate or distributive share of the credit to the extent it
only available to estate filers. Trust filers should enter does not exceed $750 per investor.
zero on this line.
For a list of eligible SGOs, see tax.ohio.gov/SGO. See
To qualify for this credit the decedent must have claimed also R.C. 5747.73.
the federal “credit for child and dependent care expenses” on federal form 2441. See Child and Dependent Care Line 11 - Credit for Work-Based Learning Experiences
Credit Worksheet on Appendix A.
This credit is granted by the Ohio Department of EduImportant: For IT 4708 filers, this credit is not available.
Enter zero on this line. For IT 1041 filers, this credit is
only available to estate filers. Trust filers should enter
zero on this line.

cation (ODE). To claim the credit, you must attach a
copy of the certificate from ODE that indicates the
Line 7 – Campaign Contribution Credit
amount of the credit and the tax year for which the
Important: For IT 4708 filers, this credit is not available. credit is awarded. Additionally, if this credit is based
Enter zero on this line. For IT 1041 filers, this credit is on your ownership of a pass-through entity that holds
only available to estate filers. Trust filers should enter the certificate, you must also include documentation
zero on this line.
showing your portion of the credit.
To qualify, you must have contributed money to the For more information about the requirements for this
campaign committee of a candidate for any of the fol- credit, visit education.ohio.gov. See R.C. 5747.057.
lowing Ohio offices:
Line 12 – Ohio Adoption Credit Carryforward
●	Governor or lieutenant governor
●	Secretary of state
The Ohio adoption credit was repealed and is no longer
●	Auditor of state
available. However, this nonrefundable credit had a
●	Treasurer of state
five-year carryforward. Therefore, you may continue
●	Attorney general
to claim any unused credit for the five-year period or
●	Chief justice of the Ohio Supreme Court
until it is fully utilized.
●	Justice of the Ohio Supreme Court
●	Ohio Board of Education
See R.C. 5747.054.

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Important: For IT 4708 filers, this credit was not avail- This credit cannot be claimed based on the amount
able. Enter zero on this line. For IT 1041 filers, this credit of estimated tax credit-eligible training expenses apwas only available to estate filers. Trust filers should proved by ODOD prior to the application for the credit.
enter zero on this line.
For more information about the requirements for this
See former R.C. 5747.37, repealed in 2023 Am. Sub. credit, visit development.ohio.gov, or call 1-800-848H.B. No. 45.
1300. See R.C. 5747.82.
Line 13 – Nonrefundable Job Retention Credit

Line 16 – Welcome Home Ohio Credit

This credit is granted by the Ohio Department of Development (ODOD). To claim the credit, you must attach a copy of the certificate from ODOD that indicates
the amount of the credit and the tax year for which the
credit is awarded. Additionally, if this credit is based
on your ownership of a pass-through entity that holds
the certificate, you must also include documentation
showing your portion of the credit. To the extent this
credit exceeds your tax liability, any remaining balance can be carried forward up to three years.

This credit is granted by the Ohio Department of Development (ODOD). To claim the credit, you must attach
a copy of the certificate from ODOD that indicates the
amount of the credit and the tax year for which the
credit is awarded. Additionally, if this credit is based
on your ownership of a pass-through entity that holds
the certificate, you must also include documentation
showing your portion of the credit. To the extent this
credit exceeds your tax liability, any remaining balance
can be carried forward up to five years.

For more information about the requirements for this For more informa