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Ohio’s PTE SALT Cap Form IT 4738 on-demand video available

Written on Apr 7, 2023

The Ohio Society of CPAs is offering an on-demand video of a recording covering the new IT 4738 Form. After the passage of OSCPA-supported Senate Bill 246 (134th General Assembly), the Ohio Department of Taxation (ODT) has created a third PTE tax form (IT 4738) that allows a qualifying PTE to elect to be subject to this entity-level tax starting in tax year 2022. This is Ohio's solution to the federal $10,000 SALT deduction cap limit placed on individuals. To support CPAs and related professionals in navigating this new elective form, OSCPA in partnership with Zaino Hall & Farrin and ODT is making available a recording of the 60-minute live presentation from March 9 which includes real-time Q&A. The ODT released more updates on April 6.  

The ODT created the new Form IT 4738 after the enactment of OSCPA-supported Senate Bill 246, also known as Ohio’s version of the SALT cap deduction parity/workaround. The guidance includes a final version of the new IT 4738 form and instructions, a new payment coupon, and an additional 13 FAQs bringing the total to 33 FAQs. All of the prior guidance also can be found by clicking here.    

S.B. 246 authorizes PTE owners to claim a refundable credit against the owner’s Ohio income tax liability equal to the owner’s proportionate share of the tax paid by the PTE. IRS Notice 2020-75 permitted states to enact legislation to clarify that taxes paid by a PTE do not count towards an owner’s $10,000 SALT deduction cap limitation for federal income tax purposes. Twenty-nine states have addressed this issue, and three states have introduced bills. See the map of states with pending or enacted legislation.   

Purchase the product here. NOTE: This product does NOT qualify for CPE.  

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