Columbus, Ohio – The Ohio House of Representatives on Wednesday unanimously passed legislation to update tax deductions for contributions to state 529 plans and ABLE savings accounts, announced bill sponsors, State Representatives Adam Mathews (R-Lebanon) and Nick Santucci (R-Niles).
House Bill 48 will raise the annual deduction limit for married, joint filers for contributions to state 529 plans and ABLE savings accounts to $8,000 as well as index the annual deduction limits to inflation beginning in 2026.
Under current law, a ‘marriage penalty’ exists where married couples filing separately can deduct $4,000 each while married couples filing jointly can only deduct $4,000 total. House Bill 48 will remedy this issue by redefining the annual contribution limit in statute to allow for joint filers to claim an $8,000 deduction.
“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,” said Mathews.
“House Bill 48 reflects our commitment to empowering Ohio families with the tools they need to plan for their future,” said Santucci. “With this commonsense change, we’re making it easier for Ohioans to invest in education and build financial independence.”
House Bill 48 now awaits consideration from the Ohio Senate.
Learn how to launch a STABLE Account…
A STABLE Account is an investment account that allows eligible individuals with disabilities to save and invest money without losing eligibility for certain public benefits programs, like Medicaid, SSI, or SSDI.
Learn more about Ohio’s tax-free 529 Direct Plan
This is the simple, flexible way to save for whatever school comes after high school. This site is for do-it-yourself 529 Plan savers looking for the lowest cost way to invest.
