Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in. A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

What is the deduction for Ohio 529 plan contributions?

Taxpayers can deduct contributions they made to an Ohio 529 (CollegeAdvantage) savings plan. This deduction is limited to $4,000* per beneficiary per year. The deduction is not limited to the savings plan owner or beneficiary. Instead, any taxpayer who makes a contribution is entitled to the deduction. Taxpayers may not deduct:

  • Amounts contributed by another person; OR
  • Amounts contributed to another state's 529 savings plan.

Contributions exceeding the $4,000 limitation may be carried forward and deducted on future year's returns until fully utilized, subject to the annual limitation of $4,000 per beneficiary.

Example 1: Katrine opens an Ohio 529 savings plan for her son. Katrine’s friend, Cale, contributes $5,000 to the savings plan for Katrine’s son. Cale is entitled to a $4,000 deduction on his current-year return, and has $1,000 he can deduct in a future tax year. Katrine is not entitled to any deduction related to Cale’s contribution.

Married taxpayers may deduct up to a maximum of $4,000 per beneficiary whether their filing status is married filing jointly or married filing separately.

Example 2: Paolo and Allison are married but file separate Ohio income tax returns (married filing separate status). They each contribute $5,000 ($10,000 total) to an Ohio 529 savings plan for their grandson. They can only deduct a maximum of $4,000 on their current-year returns. Thus, they must decide how much of the deduction each will use and how much each will carry forward for use in future tax years. For example, they can each deduct $2,000, or one could deduct $1,000 and the other could deduct $3,000.

*For tax year 2017 and prior, the deduction was limited to $2,000 per beneficiary per tax year.

See R.C. 5747.70(A).

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