OHIO I-FILE TAX RETURN REPORT YEAR 2005 |
Schedule A - Deductions |
College Guaranteed Variable Savings Account and Ohio Tuition Credits |
Enter the total of A., B. and C: A. Contribution Deduction: 2005 purchases of Tuition Units and contributions to the Ohio Tuition Trust Authority's CollegeAdvantage 529 Savings Plan, up to $2,000 per beneficiary. Qualifying amounts exceeding the $2,000 limitation may be deducted on future years' returns, subject to the annual $2,000 - per beneficiary limitation, until all unused portions are deducted. Married taxpayers may deduct up to a maximum of $2,000 per beneficiary whether their filing status is married filing joint or married filing separate. NOTE: This deduction does not apply to investments in IRC Section 529 qualified tuition plans offered by other states. B. Adjustments for Earnings on Certain Distributions: Any portion of the earnings reported to you on your 2005 federal Form 1099Q from the CollegeAdvantage program that were used to pay qualified higher education expenses, and because of certain federal tax limitation such earnings are not excluded from your federal adjusted gross income. NOTE: Due to a change in federal law, beginning in 2002 the earnings portion of distributions from IRC Section 529 Programs may generally be excluded from federal adjusted gross income if the distribution is used solely to fund qualified higher education expenses. If the earnings portion of a 2005 distribution from Ohio's CollegeAdvantage program is excluded from federal adjusted gross income, then no further adjustment is required. For federal tax purposes, however, there are certain situations where, due to the coordination of benefits from a IRC Section 529 Program, with other federal tax benefits for higher education expenses (such as the federal Hope and Lifetime Learning Credits and Coverdale Education Account distributions), the earnings on a distribution from the CollegeAdvantage program which are actually used to pay qualified higher education expenses may not be excluded from federal adjusted gross income. This special earnings exclusion only applies to distributions from the CollegeAdvantage program and not to distributions from IRC Section 529 qualified tuition plans offered by other states. C. Adjustment for Distributions at a Loss: Any distribution reported to you on 2005 federal Form 1099Q reflects a refund of Tuition Credits or Tuition Units due to termination of the tuition payment contract and your Basis in Box 3 (related to the Credits and Units) is greater than the Gross Distribution Box 1 (related to the Credits and Units) or the Earnings in Box 2 (related to the Credits and Units) is negative. You may only add this loss (either negative earnings or Box 3 minus Box 1) to your total as a positive number, if this loss is not deducted in federal adjusted gross income. |