Santucci Introduces Legislation to Provide Tax Relief for Ohioans with Disabilities

COLUMBUS – State Representatives Nick Santucci (R-Howland Twp.) and Adam Mathews (R-Lebanon) this week introduced legislation that would modify income tax deductions for contributions to 529 plans and STABLE accounts, which are investment accounts available to eligible individuals with disabilities. They allow individuals with disabilities to save and invest money without losing eligibility for certain public benefits programs, like Medicaid, SSI, or SSDI.

Currently, single tax filers can claim a $4,000 deduction, and married, joint tax filers can also claim only a $4,000 deduction. This bill will raise the deduction limit to $8,000 to account for a second person.

“This legislation will ensure Ohioans with disabilities are not penalized for being good stewards of their finances,” Santucci said. “This common-sense policy will help support our citizens in need.”

In addition to increasing the maximum tax deduction maximum for joint filers, this legislation indexes these deductions to account for inflation.

The measure now awaits official committee assignment.