PolicyEngine / PolicyEngine/policyengine-us
Ohio Retirement Income Credit (R.C. §5747.055) not modeled
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Description
PolicyEngine US 1.720.6 does not model Ohio's Retirement Income Credit (Ohio R.C. §5747.055; Schedule of Credits line 2). This is a real statutory credit reducing Ohio tax by up to $200/return for taxpayers with $500+ of qualifying retirement income, with the amount tiered by Ohio
taxable income:
┌──────────────────────────────┬────────┐
│ Ohio taxable income │ Credit │
├──────────────────────────────┼────────┤
│ under $500 retirement income │ $0 │
├──────────────────────────────┼────────┤
│ $500 to $25,000 │ $200 │
├──────────────────────────────┼────────┤
│ $25,000 to $50,000 │ $100 │
├──────────────────────────────┼────────┤
│ $50,000 to $100,000 │ $50 │
├──────────────────────────────┼────────┤
│ over $100,000 │ $25 │
└──────────────────────────────┴────────┘
Reference: Ohio Department of Taxation 2024 IT 1040 Schedule of Credits instructions, line 2 (https://tax.ohio.gov/static/forms/ohio_individual/individual/2024/it1040sd-instructions.pdf) (current version cites the same statute).
Reproducer:
from policyengine_us import Simulation
sim = Simulation(situation={
'people': {
'p0': {'age': {2026: 67}, 'taxable_pension_income': {2026: 40000},
'social_security': {2026: 30000}},
'p1': {'age': {2026: 65}, 'social_security': {2026: 20000}},
},
'tax_units': {'tu': {'members': ['p0', 'p1'], 'filing_status': {2026: 'JOINT'}}},
'households': {'h': {'members': ['p0', 'p1'], 'state_code': {2026: 'OH'}}},
})
print(sim.calculate('state_income_tax', 2026)[0]) # $329.18
Expected: $129.18 (after applying $200 retirement-income credit for taxable income < $25k — Ohio taxable income here is $35,038, so actually $100 credit → $229.18).
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