Reduce Your Taxes While Saving for College
Saving for college can be daunting! Some parents are even trying to save for college and a private education at the same time. We have found very few people are aware of a recent tax change that can help reduce their taxes while saving for a college (or even private school) education.
The tax changes passed in late 2017 now allow section 529 education savings plans (if you don’t know what this is, we have addressed it below) to be used for primary education expenses up to $10,000 per year. This can be a big tax win for parents with children in private school in Ohio.
Ohio allows for a $4,000 state tax deduction per beneficiary (up from $2,000 in 2017) for funds contributed to an Ohio CollegeAdvantage plan. While the accounts were originally established for college savings, now they can be used to pay for primary private education.
So instead of making your next tuition payment from your checking account, simply contribute to your child’s CollegeAdvantage account and then request reimbursement for the tuition you paid. It's as simple as that to qualify for a $4,000 Ohio tax deduction, even more if you have more kids in school!
Have kids or grandkids in private school? Friends saving for college education? Please share this article!