Columbus, OH (PRWEB) April 14, 2011
With the deadline to file state of Ohio income taxes quickly approaching, so too is the option for Ohioans to direct deposit all or a portion of their 2010 state tax refund into a CollegeAdvantage 529 account. In March 2010, Senate Bill 155 was signed into law giving Ohioans the option to deposit their State of Ohio tax refund directly into an Ohio 529 account when families file online.
“The direct deposit initiative offers Ohio taxpayers an opportunity to save for college through a simple step on their State of Ohio online tax form,” said Richard M. Norman, interim executive director of the Ohio Tuition Trust Authority. “This is the first year for the tax refund option and we encourage families to take advantage to help build their college savings accounts.”
To further help families start saving for college, the Tuition Trust is also offering a $25 matching contribution when a new CollegeAdvantage 529 account is opened by April 30.
“Our purpose is to show families that you can save for college, even $25 at a time, and over time your account will add up. The key is to get started and then start a regular monthly savings plan through your bank account or payroll deduction. It’s that easy and that affordable,” said Mr. Norman.
In addition to the tax refund option, Ohio also provides other state tax incentives to save. Any Ohio taxpayer who contributes to a CollegeAdvantage 529 account can deduct the contribution from Ohio taxable income. Up to $2,000 per contributor (or married couple) can be deducted for each child annually and contributions over $2,000 can be deducted in future years. Earnings in the plan are exempt from state and federal taxes when the funds are used for higher education expenses.
Families can open a CollegeAdvantage account by going online at http://www.collegeadvantage.com or by calling 1-800-AFFORD-IT (233-6734) and requesting an enrollment kit.
About the Ohio Tuition Trust Authority
The Ohio Tuition Trust Authority is a state agency within the office of the Chancellor of the Ohio Board of Regents and was created by the Ohio General Assembly in 1989. The Tuition Trust offers the CollegeAdvantage 529 Savings Plan to provide families with a tax-advantaged way to save for college. The CollegeAdvantage program currently has over $6.3 billion in total assets on behalf of 687,000 beneficiaries. For more information about the Tuition Trust visit http://www.collegeadvantage.com. Members of the media can visit http://www.collegeadvantage529media.com to create an account and view the CollegeAdvantage 529 Media Kit. Become a fan of CollegeAdvantage on Facebook or follow @Ohio529Plan on Twitter.