Private school education can have many upsides, but saving for college while paying private school tuitions can be daunting. I have found very few people are aware of a recent tax change that can help reduce your taxes!
The recent tax change has now allowed section 529 education savings plans (if you don’t know what this is, I address it here) to be used for primary education expenses up to $10,000 per year. This can be a big tax win for Ohio parents with children in private school.
Ohio allows for a $4,000 state tax deduction per beneficiary (up from $2,000 last year) for funds contributed to an Ohio College Advantage plan. While the accounts were originally established for college savings, now they can be used to pay for private education.
So instead of making your next private school tuition payment from your checking account, simply contribute to your child’s College Advantage account and then request reimbursement for the tuition you paid. Simple as that and you have a $4,000 state tax deduction!
Feel free to reach out to me if you have questions!