Disability and Survivorship Benefits
Certain disability and survivorship benefits may be deducted on your Ohio income tax return.
You MAY Deduct the Following:
- Benefits from an employees disability plan paid as the result of a permanent physical or mental disability. Note that the disability must be (or presumed to be) permanent. Disability means a permanent physical or mental impairment which makes you unable to work for pay in the jobs for which you are qualified by training and experience.
- Survivorship benefits paid from a qualified survivorship plan as the result of the death of a covered employee.
You May NOT Deduct the Following: - Payments which otherwise qualify as retirement or pension benefits. Upon reaching minimum retirement age, disability benefits which are under an employee disability plan are considered retirement or pension benefits and are no longer deductible.
- Temporary wage continuation plans.
- Payments for temporary illnesses or injuries (for example, sick pay).
See Tax Commissioner Rule 5703-7-08 for additional information about this deduction. This rule is available through the department's Web site (tax.ohio.gov).
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