How much can I deduct for an Ohio 529 plan?

Ohio lets you deduct up to $4,000 per beneficiary, per year, from your state taxable income for contributions to a CollegeAdvantage 529 plan. If you fund accounts for multiple children, the $4,000 cap applies separately to each one.

What happens if I contribute more than $4,000?

Contributions above the $4,000 annual cap are not lost. Ohio allows unlimited carryforward, so the excess can be deducted in future tax years at $4,000 per beneficiary until fully used.

Does Ohio give a credit or a deduction for 529 contributions?

Ohio offers a deduction, not a credit. The deduction reduces your Ohio taxable income, so the dollar value of the benefit equals your contribution times your Ohio marginal tax rate, not the full contribution amount.

Do I have to use Ohio's CollegeAdvantage plan?

To claim the Ohio deduction, contributions must go to Ohio's CollegeAdvantage 529 plan. Contributions to another state's 529 plan do not qualify for the Ohio income tax deduction.

Are 529 withdrawals taxed in Ohio?

Qualified withdrawals used for eligible education expenses are tax-free at both the federal and Ohio levels. Non-qualified withdrawals are subject to income tax and a 10% federal penalty on the earnings portion.

Ohio 529 Plan Tax Benefit Calculator

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Ohio rewards college savers with a state income tax deduction for contributions to its CollegeAdvantage 529 plan. This calculator turns your planned contributions into an estimated dollar tax saving and shows how much carries forward to future years.

How it works

The deduction is capped per beneficiary, with any excess rolling forward:

deductible this year = min(contribution, 4000) per beneficiary
carryforward         = max(0, contribution - 4000) per beneficiary
tax saving           = total deductible x Ohio marginal rate

Because Ohio offers a deduction rather than a credit, the benefit is your deductible amount multiplied by your marginal rate (roughly 2.75% to 3.5%), not the full contribution.

Example

A parent contributing 6,000 dollars for one child deducts 4,000 dollars this year and carries 2,000 dollars forward. At a 3.5 percent Ohio rate, the 4,000 dollar deduction saves 140 dollars in state tax, with the carried-forward 2,000 dollars available to deduct next year.

Notes

The cap is per beneficiary, so funding accounts for several children multiplies the deductible amount. Contributions must go to Ohio’s CollegeAdvantage plan to qualify, and the deduction reduces only state tax — there is no federal deduction for 529 contributions. Confirm current limits at collegeadvantage.com and tax.ohio.gov.