Updated October 24, 2026. Quick answer: Line 5 of the 2025 Ohio Schedule of Credits is the lump sum distribution credit. The instructions begin with a warning: “If you take this credit, you cannot take the $50 senior citizen credit on this year’s return or any future return.” The credit is figured on a worksheet.
What this line asks
The form labels line 5 “Lump sum distribution credit (include a copy of the worksheet and 1099-R forms)”. The instructions then give the warning above and a list of conditions that begins: “To qualify, all of the following must be true:”
Who it applies to
The instructions list four conditions: “Your MAGI less exemptions is less than $100,000”; “You were 65 or older at the end of the tax year”; “You received a total, lump sum distribution from a qualified pension, retirement, or profit-sharing plan”; and “You have not previously claimed this credit.”
This is a retirement credit, so retirees with a plan payout should read it with the lines beside it. Credit lines 2 and 3 are covered on the Ohio retirement income credit page.
What the instructions say to enter
| Step | What the instructions say |
|---|---|
| Read the warning first | “If you take this credit, you cannot take the $50 senior citizen credit on this year’s return or any future return.” |
| Check the lead-in | “To qualify, all of the following must be true:” |
| Income test | “Your MAGI less exemptions is less than $100,000” |
| Age test | “You were 65 or older at the end of the tax year” |
| Distribution test | “You received a total, lump sum distribution from a qualified pension, retirement, or profit-sharing plan” |
| Prior claim test | “You have not previously claimed this credit.” |
| Find the distribution | The instructions say a total distribution “is generally indicated in box 2b of your 1099-R.” |
| Worksheet | “Use the worksheet on page 44 to calculate this credit.” |
| Joint filers | “If filing jointly and only one taxpayer qualifies for this credit, use Column A. If each taxpayer qualifies for this credit, use both Columns A and B.” |
The figures the line prints
The income limit sits in one bullet: “Your MAGI less exemptions is less than $100,000”. The worksheet’s second step reads: “Line 1 times $50. This is your lump sum distribution credit.” The worksheet’s first step uses a table of multiples by the recipient’s age, labeled Table 1 on the worksheet page; this page quotes none of that table’s cells, so read it on your own worksheet.
Where the result goes next
The worksheet’s last step says to “Enter on the Ohio Schedule of Credits, line 5”. The form adds the credits on line 10, labeled “Total (add lines 2 through 9)”. See Ohio retirement taxes and whether Ohio taxes pensions for the wider Ohio retirement picture.
Edition and line numbers
This page reads the 2025 Ohio IT 1040 Individual Income Tax Booklet and the 2025 Ohio Schedule of Credits from the Ohio Department of Taxation, the current file served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Taking this credit and the senior citizen credit. The instructions say “If you take this credit, you cannot take the $50 senior citizen credit on this year’s return or any future return.”
- Claiming it a second time. The instructions say “You have not previously claimed this credit.”
- Overlooking the income test. The instructions say “Your MAGI less exemptions is less than $100,000”.
Related: Ohio retirement income credit, Ohio retirement taxes, how Ohio treats 401(k) and IRA withdrawals, and 1099-R boxes explained.
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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 Credits, 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.