The ice man

Take Advantage Of The Annual Federal Ohio 529 Tax Deduction

July 30, 2008 on 7:42 am | By admin | In Business

The annual federal Ohio 529 tax deduction benefit is available for parents and grandparents who are taxpayers in Texas and who make contributions to the section 529 plan on behalf of their child or grandchild. Texas does not have a state income tax, but offers a full tax deduction for 529 savings plan contributions. The federal amount is $12,000 (or $24,000 for married joint filers) per year, per child. Simply stated, you can contribute up to $12,000 without incurring a federal gift tax. Any amount exceeding the 529 gift tax exclusion limit is considered a taxable gift and must be reported on your federal gift tax return.