You may deduct the following:
- Benefits from an employee's 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 that makes you unable to work for pay in 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 that otherwise qualify as retirement or pension benefits. Upon your reaching your plan's minimum retirement age, the disability benefits you receive under that plan become retirement or pension benefits, and are no longer deductible as disability or survivorship benefits. If you are uncertain of the minimum retirement age under your plan, please contact your plan administrator for this information.
- Temporary wage continuation plans.
- Payments for temporary illnesses or injuries (for example, sick pay provided by an employer or third party).
- Pension payments that another individual was receiving but he/she died and you are now receiving these payments (pension continuation benefits). These amounts are not deductible survivorship benefits.
See Ohio Administrative Code (Ohio Rule) 5703-7-08 for additional information about this deduction. This rule is on Ohio's Web site at tax.ohio.gov