Deadline Approaching for Annual State of Ohio Tax Deduction for College Savings
Ohio taxpayers can deduct $2,000 per child.
Columbus, OH (PRWEB) December 18, 2006 -- Ohioans who enroll and contribute to Ohio Tuition Trust Authority’s CollegeAdvantage 529 Savings Plan by the end of the year can take advantage of the $2,000 annual state of Ohio income tax deduction. Any Ohio taxpayer who contributes to a CollegeAdvantage 529 account can claim the deduction including grandparents, other relatives or family friends. Up to $2,000 per contributor (or married couple) can be deducted for each child. Contributions over $2,000 per child can be deducted in future years.
"The state tax deduction creates an incentive that encourages college savings and helps break down financial barriers to higher education," said Jackie Williams, Executive Director of the Tuition Trust. “Especially at this time of year, a CollegeAdvantage account makes a prefect gift with both the receiver and the giver benefiting,” said Williams.
The state income tax deduction is just one of many benefits Ohioans receive when they participate in CollegeAdvantage. In late August, the federal tax exemption for 529 plans was made a permanent tax benefit when legislation was signed into law. In addition to the state tax deduction, earnings are exempt from state and federal taxes when funds are used for higher education expenses.
The CollegeAdvantage program offers a wide variety of investment options managed by leading financial institutions such as Fifth Third Bank, The Vanguard Group and Putnam Investments. Ohio’s 529 plan is one of the top ranked plans in the country and offers some of the lowest fees among all 529 plans. Funds can be used at any college in the country to pay for tuition, fees, books and room and board. Contributions can be made for as little as $15 and can be made online at www.collegeadvantage.com, through payroll deduction, electronic fund transfers or through convenient contribution slips.
“Online enrollment and contribution options make it easy for Ohioans to take advantage of the state tax deduction, especially for those who wait until the last minute. The CollegeAdvantage Web site has comprehensive information about the program and a simple process for enrolling and contributing,” said Williams.
Families can open a CollegeAdvantage account and choose from any of the Vanguard, Putnam and Fifth Third options by completing an account application online at www.collegeadvantage.com or by calling 1-800-AFFORD-IT (233-6734) and requesting an enrollment kit. The Putnam options are also available through financial advisors.
The Ohio Tuition Trust Authority is a state agency created by the Ohio General Assembly in 1989 to help Ohio families prepare financially for higher education. The Tuition Trust offers the CollegeAdvantage 529 Savings Plan to provide families with a tax-advantaged way to save for college. To learn more about CollegeAdvantage, call 1-800-AFFORD-IT (233-6734), or log on at www.collegeadvantage.com.
Contact:
Judith Cunningham
Ohio Tuition Trust Authority
614-752-9350
www.collegeadvantage.com
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