Ohio 529 Plan Tax Deductions
By Anne ZavagliaPosted on December 3rd, 2018
You have until December 31 to make contributions to an Ohio 529 Plan. Contributions up to $4,000, per beneficiary, are deductible on your Ohio state income tax return- up from $2,000 in previous years.
Contributions can be made to one or more beneficiaries, and the deductions are not capped. For Example, if you have 3 beneficiaries and contribute $4,000 to each of their accounts, you can deduct $12,000 from your Ohio adjusted gross income. If you were to contribute over $4,000 per account in a given year, you can carry forward this deduction to subsequent tax years until all of your contributions are fully deducted.
For those looking to maximize college savings, you may make annual contributions up to $15,000 as an individual, and $30,000 as a married couple, to each beneficiary without triggering a federal gift tax.
To boost college savings early, and maximum tax-free compounding, individuals can make a one-time $75,000 contribution, and married couples can give $150,000, per beneficiary. The contributor(s) may elect to treat the contributions as having been made pro-rata over a five-year period. Speak with your tax advisor for more information.