Ohio just earned the top spot as the best state for business. That's exciting for entrepreneurs, side hustlers, freelancers, and anyone thinking about turning an idea into income.

But here's something many people don't realize: Ohio also has one of the more favorable tax rules for many small business owners.

If your business earns qualifying business income, Ohio allows many taxpayers to deduct up to $250,000 of that income ($125,000 if you're married filing separately) when calculating Ohio income tax.

For many small business owners, that means paying no Ohio state income tax on their first $250,000 of qualifying business income.

That's money that can stay in your business instead of going to the state.

Not every dollar you earn qualifies.

This tax benefit generally applies to qualifying business income from pass-through businesses, such as many:

• Sole proprietorships
• Single-member LLCs
• Partnerships
• S corporations

Taxes influence more than just your refund.

The money you keep can help you:

• Build an emergency fund.
• Purchase new equipment.
• Invest in marketing.
• Hire employees.
• Grow your business faster.

Keeping more of what you earn gives you more options.

Many new business owners focus on getting customers—which is exactly what they should do.

But waiting until tax season to think about taxes can lead to missed deductions, unexpected tax bills, and unnecessary stress.

Planning throughout the year often produces better results than trying to fix everything in March or April.

If you live in Northwest Ohio, this ranking is especially encouraging.

Our region has long been known for manufacturing, but today's economy is much more diverse. Northwest Ohio is becoming a hub for industries that continue to attract investment and create high-paying careers, including:

• Advanced manufacturing, from automotive suppliers to precision machining.
• Healthcare, led by major employers and hospital systems serving the region.
• Logistics and distribution, thanks to easy access to I-75, I-80/90, rail networks, and the Port of Toledo.
• Agriculture and food processing, industries that remain a major part of the regional economy.
• Clean energy and solar manufacturing, with the Toledo area continuing to attract investment in solar technology and advanced glass manufacturing.

Ohio's recent ranking as the nation's top state for business was driven in part by its strong infrastructure, competitive cost of doing business, and solid performance in economic growth and technology and innovation. Those strengths make regions like Northwest Ohio attractive to employers looking to expand or relocate.

As businesses invest and hire, more people begin asking important tax questions:

• Should I start an LLC for my side business?
• How do I handle taxes on self-employment income?
• Can I deduct business expenses?
• Should I make estimated tax payments?
• Am I taking advantage of Ohio's business income deduction?

These aren't just tax-season questions—they're year-round financial decisions that can affect how much money you keep.

Whether you're starting a side hustle, opening your first business, or expanding an existing one, understanding the tax rules can help you avoid surprises and keep more of your hard-earned income.

At A.D. Juarez LLC, my goal is to help Ohio taxpayers and small business owners understand the tax code in plain English, so they can focus on growing their careers and businesses with confidence.

Ohio's recognition as the nation's top state for business is good news, but tax laws are only valuable if you understand how they apply to you.

Whether you're starting your first side hustle or already running a growing business, understanding your tax situation can help you keep more of what you earn and avoid costly surprises.

If you're looking for straightforward tax preparation and practical guidance, A.D. Juarez LLC is here to help Ohio individuals and small business owners navigate tax season with confidence.

If you make under $100,000 a year, you might wonder: "Is tax planning even necessary for me?"
The answer is yes! With a few simple strategies, you can reduce your tax bill, avoid surprises, and keep more money in your pocket. As a tax preparer who works mainly with low- and moderate-income individuals, here’s what I recommend:

Understanding your federal tax bracket helps you predict how much of your income is taxed. In 2025, if you're single and earning:

• Up to $47,150, you're in the 12% bracket.
   
• $47,151 to $100,525, you're in the 22% bracket.
   

(Thresholds are slightly higher if you're married filing jointly.)

Why it matters: Your tax bracket impacts decisions like whether to take extra deductions, contribute more to retirement, or adjust your paycheck withholding.

If you usually owe a lot at tax time — or get a large refund — it’s smart to adjust your W-4 with your employer. A more accurate withholding means:

• Bigger paychecks during the year, or
   
• Avoiding a stressful surprise next April.
   

Tool: Use the IRS Tax Withholding Estimator to see if you need to update your W-4.

Several tax credits are available if you make under $100k:

• Earned Income Tax Credit (EITC): In 2025, you may qualify if your income is below about $63,398 (limits vary based on family size).
   
• Child Tax Credit (CTC): Worth up to $2,000 per child.
   
• Saver’s Credit: If you contribute to retirement and make under $76,500 (married) or $38,250 (single).
   
• Education Credits: Like the American Opportunity Credit or Lifetime Learning Credit.
   

Tax credits directly reduce your taxes owed, and some can even give you a refund.

An IRA lets you save for retirement and lower your taxes.

• Traditional IRA: Contributions may be tax-deductible based on your income.
   
• For 2025:
   
  • If you're single and earn less than $77,000, you can deduct the full contribution (if you’re covered by a workplace plan).
     
  • If you're married filing jointly and your income is under $123,000, you can deduct the full amount.
     

Contribution limit for 2025:
👉 Up to $7,000 (or $8,000 if you're 50 or older).

Tip: Even if you don’t itemize deductions, IRA contributions can lower your taxable income.

If your employer offers a 401(k), contributing to it can significantly lower your taxable income.

• Contributions are made before taxes are taken out of your paycheck.
   
• The 2025 contribution limit is $23,000 (plus an extra $7,500 if you're 50+).
   

Many employers also match a portion of your contribution — that’s free money toward your retirement!

Bonus: Contributing more might also help you stay within income limits for credits like the EITC or the Saver’s Credit.

Good recordkeeping = less stress at tax time! Set up a simple system:

• Save receipts for deductions like charitable donations, education expenses, or healthcare costs.
   
• Track mileage for work or volunteering.
   
• Keep forms like 1099s or W-2s in one place.
   

Small habits now can mean bigger refunds later.

If you have a side hustle, drive for a rideshare company, or sell items online, remember:

• All income is taxable — even if you don’t get a 1099 form.
   
• You might need to pay estimated taxes quarterly.
   
• You could also qualify for deductions like home office, mileage, or supplies.
   

Keeping side business income organized can save you money and headaches.

Even if you think your situation is simple, a tax professional can help:

• Spot credits and deductions you might miss.
   
• Plan for life changes (marriage, children, new jobs).
   
• Avoid mistakes that could cost you later.
   

The right help can often pay for itself — and reduce a lot of stress.

Bottom Line:
Making under $100,000 doesn’t mean you should just "wait until tax time." A little planning throughout the year can mean lower taxes, bigger refunds, and better financial stability. You've worked hard — let's make sure your money works hard for you, too!

My name is Andreas Juarez and the beautiful lady in the picture is Makayla. We have two dogs and one cat. We live an easy-going life just outside of Toledo. Aside from hanging out with family, I enjoy going fishing, playing basketball, and listening to music (J Cole and similar artists). It would be a missed opportunity if I didn’t mention that I’m a foodie! The enthusiasm started with watching Food Network with my mother when I was young. Currently, as of late April of 2025, I have completed my master’s degree program in accounting, and I hold a bachelor’s degree from The Ohio State University (Class of 2021) in Business Administration with a focus on Finance. What drives me is the innocence of ignorance. Many people “don’t know what they don’t know” and it isn’t their fault. They perhaps have never had self-employed income, needed to rollover a retirement account, or purchase health insurance from the federal marketplace which creates additional tax filing requirements. At A.D. Juarez, LLC, we believe in a client-centered approach. We take the time to understand your financial situation and provide tailored solutions that maximize your tax benefits.