State Representatives Nick Santucci’s (R-Howland Twp.) and Adam Mathews’ (R-Lebanon) legislation to raise the tax deduction for joint filers for contributions to 529 plans and Ohio ABLE savings accounts unanimously passed during its committee hearing on Tuesday.
"I am grateful to simplify the Ohio tax code and empower families to better provide for the future of their children, whether that is for college students or those with developmental disabilities,” Mathews said.
Under current law, taxpayers who file individual tax returns may claim a $4,000 deduction for a contribution to a 529 plan or ABLE account. Married taxpayers who file independently may each claim a $4,000 deduction; however, married taxpayers filing jointly may only claim one $4,000 together. This bill raises the deduction limit to $8,000 for joint filers to account for the second person and remove the marriage penalty. Additionally, the bill also indexes the deduction limit to inflation.
“Reducing tax penalties on Ohioans working to be good stewards of their finances is just common sense,” Santucci said. “This legislation is a win for Ohio families, and I’m proud to see it pass out of committee with unanimous support.”
The legislation now awaits House floor consideration.