Bill would double 529/ABLE deduction for joint filers and index it to inflation

Representative Matthews and Representative Santucci presented sponsor testimony for House Bill 48, which would change Ohio’s deduction rules for contributions to 529 education plans and ABLE accounts.

Under current Ohio practice described in testimony, taxpayers may claim a deduction for contributions to the state’s 529 plans and ABLE accounts at $4,000 per beneficiary per year, and that $4,000 cap applies to both individual filers and married joint filers. Representative Matthews said HB48 would redefine the annual deduction to allow married couples filing jointly to claim $8,000 per beneficiary per year, removing what sponsors described as a ‘‘marriage penalty.’’ The bill would also index the deduction limit to inflation starting in 2026 and would preserve the existing unlimited carryforward provision that lets taxpayers contribute in excess of the annual limit and claim those deductions in later years.

Senator Mora asked whether a surviving spouse could continue to claim the $8,000 joint deduction after a spouse’s death; Representative Matthews said she would look into that filing‑status scenario and follow up with the committee. Other members expressed support for the change as a pro‑family, parity measure.

Ending: The committee closed the first hearing on HB48 after sponsor testimony and limited Q&A; no committee vote was taken.