Ohio Code § 5747.70

§ 5747.70.

(A) In computing Ohio adjusted gross income, a deduction from federal adjusted gross

income is allowed to a taxpayer who contributes to or purchases tuition units under

a qualified tuition program established in accordance with section 529 of the Internal Revenue Code .  The amount of the deduction shall equal the amount contributed or purchased during

the taxable year to the extent that the amounts of such contributions and purchases

were not deducted in determining the contributor's or purchaser's federal adjusted

gross income for the taxable year.  The combined amount of contributions and purchases deducted in any taxable year

by a taxpayer or the taxpayer and the taxpayer's spouse, regardless of whether the

taxpayer and the taxpayer's spouse file separate returns or a joint return, is limited

to four thousand dollars for each beneficiary for whom contributions or purchases

are made.  If the combined annual contributions and purchases for a beneficiary exceed four

thousand dollars, the excess may be carried forward and deducted in future taxable

years until the contributions and purchases have been fully deducted. (B) In computing Ohio adjusted gross income, a deduction from federal adjusted gross

income is allowed for: (1) Income related to tuition units and contributions that as of the end of the taxable

year have not been refunded pursuant to the termination of a qualified tuition program

payment contract or account to the extent that such income is included in federal

adjusted gross income. (2) The excess of the total purchase price of tuition units refunded during the taxable

year pursuant to the termination of a qualified tuition program payment contract over

the amount of the refund, to the extent the amount of the excess was not deducted

in determining federal adjusted gross income.  Division (B)(2) of this section applies only to units for which no deduction was

allowable under division (A) of this section. (C) In computing Ohio adjusted gross income, there shall be added to federal adjusted

gross income the amount of loss related to tuition units and contributions that as

of the end of the taxable year have not been refunded pursuant to the termination

of a qualified tuition program payment contract or account to the extent that such

loss was deducted in determining federal adjusted gross income. (D) For taxable years in which distributions or refunds are made under a qualified tuition

program for any reason other than payment of higher education expenses, or the beneficiary's

death, disability, or receipt of a scholarship as described in section 3334.10 of the Revised Code : (1) If the distribution or refund is paid to the purchaser or contributor or beneficiary,

any portion of the distribution or refund not included in the recipient's federal

adjusted gross income shall be added to the recipient's federal adjusted gross income

in determining the recipient's Ohio adjusted gross income, except that the amount

added shall not exceed amounts previously deducted under division (A) of this section

less any amounts added under division (D)(1) of this section in a prior taxable year. (2) If amounts paid by a purchaser or contributor on or after January 1, 2000, are distributed

or refunded to someone other than the purchaser or contributor or beneficiary, the

amount of the payment not included in the recipient's federal adjusted gross income,

less any amounts added under division (D) of this section in a prior taxable year,

shall be added to the recipient's federal adjusted gross income in determining the

recipient's Ohio adjusted gross income.