Ohio has updated its Internal Revenue Code (IRC) conformity to incorporate changes to the IRC taking effect after March 30, 2017. The incorporated changes include the federal:
- Tax Cuts and Jobs Act; and
- Bipartisan Budget Act of 2018.
“Dependents” and 529 Plans
The changes include:
- for tax years 2018 through 2025 defines “dependents” as defined in the IRC; and
- expands Ohio’s 529 education savings plan to include expenses for private or parochial K-12 education expenses.
The updated definition of “dependents” removes the requirement that dependents be claimed on a federal income tax return. The federal exemption was temporarily suspended by the Tax Cuts and Jobs Act.
S.B. 22. Laws 2018, effective March 30, 2018; Press Release, Ohio Department of Taxation, April 2, 2018