Shirlee Zerkel: Timely tax advice -- Ohio tax savings

From Shirlee Zerkel, February 10, 2006

John,

Yes, this is legit. It is in the Ohio Tax booklet for filing 2005 taxes this year. It is on side 2 of the Ohio IT1040 tax form. But what Paul does not mention is that on line 43 of that Ohio tax form, you can count medical expenses, mileage, dental eye glasses and the part you pay for all medications, premiums, such Medicare B, Medicare supplements and any premiums for health care that you from your pension check to STRS. You do NOT have to itemize.

There is a worksheet in the Ohio tax booklet to figure how much of your expenses are deductible. This is on page 20 of the booklet. In the worksheet box, put in line 1 all the premiums for health that you pay from you pension or to another company and all medical expenses out of pocket that you pay for the year 2005. .

In line two add for any insurance such as long term. Line 3 Subtract line 2a from line 1. Line 4 Enter federal adjusted gross income (line one of your IT1040 Ohio form. Line 5, multiply gross income by .075 (7.5%) and put that on line 6. Subtract line 6 from line 3. If less than -0, enter 0 on line 7. add lines 2b and 7. enter on line 8 and then on line 43 on back side of Ohio tax form.

By doing this I received all Ohio Income taxes that were taken from my pension check each of the past two years. That is great for those of us who have had large medical expenses that take 30 to 40% of our pension money.

Just trying to help other STRS retirees survive,

Shirlee