Invest in your kid’s college fund, thank us next tax season
If there has ever been a time to invest in your child’s future education, it’s now.
Yearly deductions for contributing to Ohio’s 529 college-saving plan have gone up 100 percent, effective January 1. Now, if you contribute to Ohio CollegeAdvantage plans, you’ll see deductions go up from $2,000 to $4,000.
Here’s an example of how the plan can work per The Dispatch:
“An Ohio taxpayer with two children and a 529 plan for each could claim a total deduction of $8,000 by putting $4,000 into each account. A taxpayer with one child and one account could contribute $8,000 in one year and deduct $4,000 the year of the contribution and the remainder the next year.”
This change will be a good incentive for parents to start those college funds early so that by the time their child(ren) graduate high school, the cost of furthering their education will be more feasible.
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