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.

How are contributions made from a Ugift/Upromise account treated?

Ugift: Ugift allows 529 plan owners to encourage family and friends to contribute to a 529 savings plan in lieu of traditional gifts. Owners of the 529 plan share a unique Ugift code for each beneficiary with others, who use the code to make contributions into the 529 savings. Since the contributions go directly into the 529 savings plan, the person who makes the contribution is eligible for the Ohio income tax deduction. The owner of the plan is only entitled to a deduction if s/he makes the Ugift contribution.

Upromise: Upromise allows the owner to earn rewards points in their Upromise account. These rewards points can be transferred into a designated 529 savings plan, or deposited into the owner’s bank account. Rewards points can be earned by the owner or any other individual linked to the owner’s Upromise account.

Since the rewards points are not directly contributed into the 529 savings plan, the Upromise account owner is only eligible for the Ohio income tax deduction if s/he transfers the money from the Upromise account to the Ohio 529 savings plan. An individual who earns rewards points into another person’s Upromise account is not eligible for the Ohio income tax deduction.

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