IT NRCE: 2025 Estate Nonresident Credit (2025)
Ohio · Ohio Department of Taxation · Used for tax years 2025
Ohio IT NRCE calculates the estate nonresident credit by allocating and apportioning income to Ohio. It reports federal and Ohio income and deductions, including business income and related apportionment calculations.
Who files this form
Ohio IT NRCE is for nonresident estates. Estates use it to calculate the nonresident portion of their federal taxable income for the Ohio nonresident credit.
All Ohio nonresident estates must complete Section I, Parts A and B, and include the form with their completed Ohio IT 1041.
This version applies to tax years 2025 and forward. Individuals should use Ohio IT NRC instead.
What you'll need
Have these forms and records available, as applicable:
- The estate’s federal Form 1041 and supporting schedules showing income and deductions.
- Ohio IT 1041, Ohio Schedule II, and the PTE & Fiduciary Schedule of Credits.
- The estate’s name, tax year, and FEIN/SSN, plus identifying information for each business.
- Records separating Ohio income from total income.
- For businesses requiring Section III, records of property, payroll, and sales within Ohio and everywhere, along with business income and depreciation amounts.
- Ohio IT K-1 forms received from pass-through entities. Attach a copy when using it instead of completing Section III for that entity.
- Detailed apportionment calculations for any R.C. 5747.212 income reported on Section III, line 17.
How to file
Include a completed Ohio IT NRCE with the estate’s completed Ohio IT 1041, and keep a copy for your records. If the tax preparation software allows PDF attachments, include a copy of IT NRCE.
To prepare the form:
- Complete Section I, Parts A and B, using the federal amounts and the corresponding Ohio amounts.
- List businesses in Section II from highest to lowest Ohio apportioned income. Include businesses with no Ohio nexus, although those businesses do not require Section III.
- Complete a separate Section III for each business with Ohio nexus, unless you attach its Ohio IT K-1 instead. When using an IT K-1, still list the business in Section II and check the IT K-1 box.
- Enter the credit from Section I, line 16, on line 31 of the PTE & Fiduciary Schedule of Credits.
The supplied text does not provide a mailing address or separate e-filing submission instructions.
Common mistakes
- Counting an item twice. Do not include any income or deduction on more than one line in Section I, Parts A and B. Business income belongs only on line 5.
- Adding Section II columns B and C to get column A. Each column is calculated independently. Column A is not the total of the other two columns.
- Copying federal business income without checking Ohio treatment. The text warns that some amounts treated as business income federally may not qualify as business income under Ohio law.
- Including excluded deductions on Section I, line 9. Do not include amounts directly deducted on Ohio Schedule II, line 33, State or Municipal Income Tax Overpayments, or line 39, Ohio Depreciation Deduction.
- Including guaranteed payments on Section III, line 8. Do not put them there, even if they appear on federal Schedule E.
- Using an old depreciation deduction amount. Section III, line 20, uses the current year’s Ohio Schedule II calculation, not an amount from a prior year’s filing.
Questions people ask
Can an individual use Ohio IT NRCE?
No. Only nonresident estates may use IT NRCE. Individuals should use Ohio IT NRC.
Do I need Section III if the estate received an Ohio IT K-1?
Not for that entity if you attach a copy of its Ohio IT K-1. You must still list the business in Section II, check the IT K-1 box, and enter the required amounts.
What if the estate has more than 20 businesses?
Include additional copies of page 2 with only lines 1 through 20 completed. Enter the totals from those additional pages on line 21.
Must I list a business with no Ohio nexus?
Yes. Include it in Section II, but you do not need to complete Section III for that business.