Updated October 24, 2026. Quick answer: Line 32 of the 2025 Ohio Schedule of Adjustments has four conditions that must all be true. The instructions begin with a warning: “Nonresidents and resident servicemembers stationed in Ohio are not eligible for this deduction.”
What this line asks
The printed label is “Military pay received by Ohio residents while stationed outside Ohio”. The instructions state the test this way: “Deduct military pay and allowances only if all of the following are true”.
Who it applies to
The instructions open with this warning: “Nonresidents and resident servicemembers stationed in Ohio are not eligible for this deduction.” The four conditions in the table follow it. Military retirement pay is a separate matter, handled on line 34; see Ohio Schedule of Adjustments line 34 and whether Ohio taxes military retirement.
What the instructions say to enter
| Step | What the instructions say |
|---|---|
| Read the warning first | “Nonresidents and resident servicemembers stationed in Ohio are not eligible for this deduction.” |
| All four must be true | “Deduct military pay and allowances only if all of the following are true” |
| Condition 1 | “They are included in your federal AGI” |
| Condition 2 | “You received them while stationed outside Ohio” |
| Condition 3 | “You are a resident of Ohio” |
| Condition 4 | “You were active duty service in the U.S. Army, Air Force, Navy, Marine Corp, Coast Guard, Space Force, or any other military service branch that is designated by Congress as a part of the armed forces of the United States or reserve components thereof, or the National Guard.” |
| Federal AGI rule for the military deductions | “Only income included in the taxpayer’s federal adjusted gross income (AGI) is eligible for these deductions.” |
The figures the line prints
The instructions for line 32 print no dollar amount or percentage.
Where the result goes next
The form puts the deductions together at the bottom of its second page: “Total deductions (add lines 13 through 46 ONLY). Enter here and on Ohio IT 1040, line 2b”. Your line 32 amount is one of the lines that total picks up. The full layout of the return is on the Ohio IT 1040 line by line page.
Edition and line numbers
This page reads the 2025 Ohio IT 1040 booklet and the 2025 Ohio Schedule of Adjustments from the Ohio Department of Taxation, the current files served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Claiming the deduction while stationed in Ohio. The instructions say “Nonresidents and resident servicemembers stationed in Ohio are not eligible for this deduction.”
- Entering pay that is not in federal AGI. The first condition is “They are included in your federal AGI”, and the booklet adds: “Only income included in the taxpayer’s federal adjusted gross income (AGI) is eligible for these deductions.”
- Treating the conditions as a menu. The instructions say “Deduct military pay and allowances only if all of the following are true”.
Related: whether Ohio taxes military retirement, Ohio retirement taxes, and whether Ohio taxes pensions.
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Answer againSources
- 2025 Ohio IT 1040 Individual Income Tax Booklet (instructions and forms), Ohio Department of Taxation: dam.assets.ohio.gov
- 2025 Ohio Schedule of Adjustments, Ohio Department of Taxation: dam.assets.ohio.gov
Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.