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 are the tax consequences for using a distribution from an Ohio 529 savings plan for non-qualifying expenses?

Distributions from an Ohio 529 savings plan are generally tax-free as long as they are used for qualified higher education expenses as defined in section 529 of the Internal Revenue Code. See the FAQ "What are 'qualified higher education expenses'?" for more information.

However, some amounts must be added back on Ohio Schedule A as income, and thus are subject to Ohio tax, if they meet all of the following:

  • The amount is not otherwise included in federal adjusted gross income;
  • The amount was not used to pay for qualified higher-education expenses and was not distributed due to the beneficiary's death, disability or receipt of a scholarship; AND
  • The amount was subject to the Ohio Schedule A deduction for Ohio 529 plan contributions on any taxpayer’s return for any tax year.

See R.C. 5747.70(D).

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